The transaction also includes five-year warrants to purchase 3.5 million shares of common stock at an exercise price of $3 per share. The transaction is expected to raise $21 million in gross proceeds. The transaction is expected to close in the coming days. Investors in the offering include existing shareholders and several additional new institutional investors.
The company intends to use the proceeds from the financing to support the manufacture of Moxatag, its once-daily amoxicillin product, and for working capital and general corporate purposes.