Benzinga | Oct 14, 2020 05:39AM EDT

Aridis Pharmaceuticals Announced 1.13M Share Registered Direct Offering Priced @ $7.4925/Share

Aridis Pharmaceuticals, Inc. (NASDAQ:ARDS) today announced that it has entered into a securities purchase agreement with certain institutional investors with extensive backgrounds in life sciences and biotechnology investing to purchase in a registered direct offering 1,134,470 shares of common stock for $7.4925 per share.

In a concurrent private placement, the investors agreed to purchase two series of warrants for an aggregate 567,234 shares of common stock. The Series A Warrants sold in the offering will have an exercise price of $7.43 per share, will be exercisable six months from the date of issuance, and will expire three and a half years from the date they become exercisable. The Series B Warrants sold in the offering will have an exercise price of $9.00 per share, will be exercisable six months from the date of issuance, and will expire three and a half years from the date they become exercisable. In addition, the Series B Warrants are redeemable by the Company at $0.01 per share upon the price of its common stock closing at $9.00 or more over five (5) consecutive trading days.

The Company intends to use the net proceeds from the registered direct offering and concurrent private placement for clinical development of its product candidates, working capital and other general corporate purposes.In the near-term, priority will be placed on the Company's ongoing AR-301 Phase 3 clinical trial for patients with ventilator associated pneumonia (VAP), AR-501's Phase 2b clinical trial for the treatment of chronic lung infections in cystic fibrosis patients, and to continue developing novel COVID-19 therapies.