Hoth Therapeutics Announces Closing of $10 Million Private Placement Priced At-the-Market Under Nasdaq Rules
NEW YORK, Jan. 3, 2023 /PRNewswire/ -- Hoth Therapeutics, Inc. (NASDAQ: HOTH) (the “Company” or “Hoth”), a patient-focused biopharmaceutical company, today announced the closing of its previously announced private placement of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase shares of common stock priced at-the-market under Nasdaq rules, resulting in gross proceeds to the Company of $10 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company sold and issued 2,000,000 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to 2,500,000 shares of common stock in the private placement, at a purchase price of $5.00 per share and accompanying warrants. The warrants have an exercise price of $5.00 per share, are exercisable immediately and have a term of five and one-half years. The pre-funded warrants have an exercise price of $0.001 per share, are exercisable immediately and will expire when exercised in full.
H.C. Wainwright & Co. acted as the exclusive placement agent for the private placement.
The Company currently intends to use the net proceeds from the private placement for further development of its 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 reoffered or resold 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 investor, the Company is required to file an initial registration statement with the SEC covering the resale of the securities issued to the investor in the private placement no later than 15 days after December 29, 2022 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 December 29, 2022 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.
About Hoth Therapeutics, Inc.
Hoth Therapeutics, Inc. is a clinical-stage biopharmaceutical company dedicated to developing innovative, impactful, and ground-breaking treatments with a goal to improve patient quality of life. We are a catalyst in early-stage pharmaceutical research and development, elevating drugs from the bench to pre-clinical and clinical testing. Utilizing a patient-centric approach, we collaborate and partner with a team of scientists, clinicians, and key opinion leaders to seek out and investigate therapeutics that hold immense potential to create breakthroughs and diversify treatment options. To learn more, please visit https://ir.hoththerapeutics.com/.
This press release includes forward-looking statements based upon Hoth’s current expectations which may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws, and are subject to substantial risks, uncertainties and assumptions including, but not limited to, market and other conditions. These statements concern the intended use of net proceeds from the private placement, Hoth’s business strategies; the timing of regulatory submissions; the ability to obtain and maintain regulatory approval of existing product candidates and any other product candidates Hoth may develop, and the labeling under any approval Hoth may obtain; the timing and costs of clinical trials, the timing and costs of other expenses; market acceptance of Hoth’s products; the ultimate impact of the current Coronavirus pandemic, or any other health epidemic, on Hoth’s business, its clinical trials, its research programs, healthcare systems or the global economy as a whole; Hoth’s intellectual property; Hoth’s reliance on third party organizations; Hoth’s competitive position; Hoth’s industry environment; Hoth’s anticipated financial and operating results, including anticipated sources of revenues; Hoth’s assumptions regarding the size of the available market, benefits of Hoth’s products, product pricing, timing of product launches; management’s expectation with respect to future acquisitions; statements regarding Hoth’s goals, intentions, plans and expectations, including the introduction of new products and markets; and Hoth’s cash needs and financing plans. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. You should not place undue reliance on these forward-looking statements, which include words such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” or similar terms, variations of such terms or the negative of those terms. Although Hoth believes that the expectations reflected in the forward-looking statements are reasonable, Hoth cannot guarantee such outcomes. Hoth may not realize its expectations, and its beliefs may not prove correct. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described in the section entitled “Risk Factors” in Hoth’s most recent Annual Report on Form 10-K and Hoth’s other filings made with the U.S. Securities and Exchange Commission. All such statements speak only as of the date of this press release. Consequently, forward-looking statements should be regarded solely as Hoth’s current plans, estimates, and beliefs. Hoth cannot guarantee future results, events, levels of activity, performance or achievements. Hoth does not undertake and specifically declines any obligation to update or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.
LR Advisors LLC
Phone: (678) 570-6791
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SOURCE Hoth Therapeutics, Inc.