Benzinga | Apr 29, 2021 09:39AM EDT

Jaguar Health Announces $10.8M Registered Direct Offering Of 7.647M Shares

Jaguar Health, Inc. (NASDAQ:JAGX) ("Jaguar" or the "Company") today announced it has entered into a securities purchase agreement (the "Transaction") with North American institutional investors for the purchase and sale of 7,647,000 shares of common stock for gross proceeds of approximately $10.8 million in a registered direct offering.

Ladenburg Thalmann & Co. Inc. is acting as exclusive placement agent in connection with the Transaction. The closing of the offering is expected to take place on or about May 3, 2021 (the "Closing Date"), subject to the satisfaction or waiver of customary closing conditions.

The Company intends to use the net proceeds from the Transaction for the benefit of the Company's wholly-owned Italian subsidiary, Napo EU S.p.A. ("Napo EU"), which may include capital expenditures, potential licenses, acquisitions, growth opportunities and strategic transactions; provided, however, if all or any of the proceeds have not been so utilized in the discretion of the Company prior to the six-month anniversary of the closing of the offering, the Company will be permitted to use such proceeds for working capital and general corporate purposes of the Company. The purchase price for the shares of common stock offered in the Transaction was $1.41 per share.

Jaguar today also announced that it has terminated the at-the-market (ATM) financing program the Company entered into with Ladenburg Thalmann & Co. Inc. on October 5, 2020. The termination of the ATM financing program is effective as of April 26, 2021.

The shares of common stock described above are being offered pursuant to a "shelf" registration statement on Form S-3 (File No. 333-248763) that was filed by the Company with the Securities and Exchange Commission (SEC) and was declared effective on September 23, 2020. The Company will file a prospectus supplement with the SEC relating to such shares of common stock. Copies of the prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering may be obtained on the SEC's website located at http://www.sec.gov, when available, or from Ladenburg Thalmann & Co. Inc., 277 Park Avenue, 26th Floor, New York, NY 10172, or by email at prospectus@ladenburg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.