Benzinga | Nov 20, 2020 09:08AM EST

Timber Pharmaceuticals Signs Waiver Agreement With Warrant Holders

WOODCLIFF LAKE, NJ, Nov. 20, 2020 (GLOBE NEWSWIRE) -- NewMediaWire -- Timber Pharmaceuticals, Inc. ("Timber" or the "Company") (NYSE:TMBR), a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases, today announced that it has signed waiver agreements with certain of its existing institutional investors.

Effective as of November 19, 2020 (the "Effective Date"), Timber entered into waiver agreements (the "Waiver Agreements") with each of the holders of its series A and series B warrants in which all the parties agreed to waive certain rights and amend certain provisions of the warrants and associated securities purchase agreement.

Pursuant to the Waiver Agreements, the holders agreed to (i) waive certain provisions in the warrants in order to allow for one immediate and final reset of the number of shares of common stock underlying the warrants and the exercise price of the series A warrants using the formula provided in the warrants*, and (ii) permanently waive the provisions providing for future resets of the number of shares of common stock underlying the warrants and the exercise price of the series A warrants (other than certain anti-dilution protection provisions in the series A warrants). As a result of the foregoing, (A) the exercise price of the series A warrants was set at $1.16 per share (the "Series A Exercise Price"), (B) the number of shares underlying all of the series A warrants was set at 20,178,214 and (C) the number of shares underlying all of the Series B Warrants was set at 22,766,776.

"We are pleased to sign these agreements which we believe will put Timber on firmer footing to reach its strategic goals," said John Koconis, Chief Executive Officer of Timber Pharma.

* For additional details of the agreement, see the Company's Form 8-K filed with the Securities and Exchange Commission on November 20, 2020.