Hoth Therapeutics announces $10M pvt placement priced at-the-market under Nasdaq rules

Hoth Therapeutics, Inc., a patient-focused biopharmaceutical company, today announced that it has entered into a definitive agreement for the issuance and sale of an aggregate of 2,000,000 shares of its common stock (or common stock equivalent in lieu thereof) and warrants to purchase up to an aggregate of 2,500,000 shares of common stock, at a purchase price of $5.00 per share and accompanying warrant in a private placement priced at-the-market under Nasdaq rules. The gross proceeds to the Company from the private placement are expected to be $10 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The private placement is expected to close on or about January 3, 2023, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement.

The warrants will have an exercise price $5.00 per share and exercise period commencing immediately upon issuance date and a term of five and one-half years.

The Company currently intends to use the net proceeds from the private placement for further development of Hoth’s product candidates and for working capital and general corporate purposes.

The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and/or Rule 506(b) of Regulation D promulgated thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

Under an agreement with the investors, the Company is required to file an initial registration statement with the SEC covering the resale of the securities to be issued to the investors in the private placement no later than 15 days after today and to use best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 75 days after today in the event of a “full review” by the SEC.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
MB Bureau