Osmotica Pharmaceuticals plc [NASDAQ: OSMT] has declared the pricing of its earlier announced underwritten public offering of 14,000,000 ordinary shares of the firm and warrants to buy up to14,000,000 ordinary shares at a public offering price of $2.50 per share and additional warrant.
The firm disclosed that the warrants have an exercise price of $3.10 per share. The warrants are immediately exercisable and will terminate three and one-half years from the date of issuance. The gross profit of the offering is projected to be $35 million, before subtracting underwriting discounts and commissions and predicted offering expenses and excluding the exercise of any warrants and the underwriter’s option to buy additional securities.
Furthermore, Osmotica Pharmaceuticals has provided the underwriter a 30-day option to acquire up to additional 2,100,000 ordinary shares and/or additional warrants to acquire up to 2,100,000 ordinary shares, at the public offering price per share and per warrant, respectively, subtracting the underwriting discounts and commissions.
The sole book-running manager for the offering is H.C. Wainwright & Co. This offering is anticipated to execute on or about October 12, 2021, after the fulfillment closing conditions. After the announcement of the pricing of the offering, the firm has faced pressure from its investor as the firm’s share plunged 28% during the pre-market trading session of Thursday.