Benzinga | Jan 12, 2021 07:07AM EST

PolarityTE Announces $10M Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

PolarityTE, Inc. (NASDAQ:PTE), a company focused on transforming the lives of patients by discovering, designing, and developing a range of regenerative tissue products and biomaterials, announced today that it has entered into a securities purchase agreement with a single healthcare-dedicated institutional investor providing for the purchase and sale of 9,090,910 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and accompanying warrants to purchase up to 9,090,910 shares of common stock. Each share of common stock (or pre-funded warrant in lieu thereof) is being sold together with one warrant to purchase one share of common stock at a combined purchase price of $1.10. The securities are being offered in a registered direct offering priced at-the-market under Nasdaq rules. The warrants will be immediately exercisable at an exercise price of $1.20 per share of common stock and will expire five years from the date of issuance. The shares of common stock or the pre-funded warrants, and the accompanying warrants, can only be purchased together in the offering but will be issued separately and will be immediately separable upon issuance.

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

The offering is expected to result in gross proceeds to PolarityTE of approximately $10.0 million before deducting placement agent and other offering expenses payable by PolarityTE. The Company intends to use the net proceeds of this offering for working capital and general corporate purposes.

The registered direct offering is expected to close on or about January 14, 2021, subject to the satisfaction of customary closing conditions.

The securities described above are being offered by PolarityTE pursuant to a "shelf" registration statement on Form S-3 (File No. 333-229584) previously filed with the U.S. Securities and Exchange Commission ("SEC") on February 8, 2019 and declared effective by the SEC on February 22, 2019. Such securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Alternatively, when available, electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (646) 975-6996.

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