Benzinga | Jan 6, 2021 06:56AM EST

EyeGate Enters Into Agreement For $8M Private Placement

WALTHAM, Mass., Jan. 06, 2021 (GLOBE NEWSWIRE) -- EyeGate Pharmaceuticals, Inc. (NASDAQ:EYEG), ("EyeGate" or the "Company"), a clinical-stage company developing and commercializing products for treating inflammatory and immune diseases with a focus on the eye and nervous system, today announced that it has entered into a securities purchase agreement in connection with a private placement (the "Private Placement") with an affiliate of Armistice Capital, LLC ("Armistice") for aggregate gross proceeds of approximately $8.0 million. The Private Placement is expected to close on or about January 6, 2021, subject to the satisfaction of customary closing conditions.



In accordance with the Purchase Agreement, the Company will issue to Armistice an aggregate of (i) 1,531,101 shares (the "Shares") of the Company's common stock, par value $0.01 per share (the "Common Stock"), and (ii) warrants (the "Warrants") to purchase an aggregate of 1,531,101 shares of Common Stock, with a combined purchase price $5.225 per Share and Warrant.

The Warrants have an exercise price of $5.225 per share, will become exercisable six months following the closing, and have a five-year term.

The Company expects to use the net proceeds from the Private Placement to support its operations, including for clinical trials, working capital and other general corporate purposes.

The securities to be issued and sold in the Private placement will not, upon issuance, be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. The Company has agreed to file a registration statement with the Securities and Exchange Commission to register the resale of the Shares and the Common Stock issuable upon exercise of the warrants described above.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any 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.