Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.19.1
Warrants
3 Months Ended
Mar. 31, 2019
Warrants And Rights Note Disclosure [Abstract]  
Warrants

5. Warrants

On March 25, 2019, the Company announced the closing of an underwritten public offering for gross proceeds of approximately $12.5 million, which included the partial exercise of the underwriter’s over-allotment option to purchase additional shares and warrants, prior to deducting underwriting discounts and commissions and offering expenses payable by the Company.

The offering was comprised of 16,666,668 shares of common stock, short-term warrants to purchase up to 8,333,334 shares of common stock, and long-term warrants to purchase up to 8,333,334 shares of common stock, at a price to the public of $0.75 per share and accompanying warrants. The Company granted the underwriter a 30-day option to purchase up to 2,500,000 additional shares of common stock and/or short-term warrants to purchase 1,250,000 shares of common stock and long-term warrants to purchase 1,250,000 shares of common stock of the Company at the public offering price, less underwriting discounts and commissions. The underwriter exercised its option to purchase the short-term warrants to purchase 1,250,000 shares of common stock and long-term warrants to purchase 1,250,000 shares of common stock effective as of the closing.

Each short-term warrant has an exercise price of $0.75 per share of common stock, is immediately exercisable, and will expire on the earlier of (1) the eighteen-month anniversary of the date of issuance and (2) twenty-one trading days following the Company’s release of top-line data related to its Phase 2 double blind, placebo controlled clinical trial of AG013. Each long-term warrant has an exercise price of $0.90 per share of common stock, is immediately exercisable and will expire five years following the date of issuance.

A summary of warrant activity for the year ended December 31, 2018 and the three months ended March 31, 2019 is as follows:

 

 

Warrants

 

 

Weighted

Average

Price

 

Balance - December 31, 2017

 

 

2,177,425

 

 

$

3.10

 

Granted

 

 

14,700,000

 

 

 

1.00

 

Exercised

 

 

(9,505,500

)

 

 

1.00

 

Expired

 

 

 

 

 

 

Balance - December 31, 2018

 

 

7,371,925

 

 

 

1.74

 

Granted

 

 

19,166,668

 

 

 

0.83

 

Exercised

 

 

 

 

 

 

Expired

 

 

 

 

 

 

Balance - March 31, 2019

 

 

26,538,593

 

 

$

1.08

 

 

The warrants outstanding as of March 31, 2019 are as follows:

 

 

 

Exercise Price

 

 

Warrants

Outstanding

 

 

Expiration

Date

 

 

$

3.10

 

 

 

48,387

 

 

9/19/2022

 

 

$

2.00

 

 

 

900,000

 

 

4/10/2023

 

 

$

3.10

 

 

 

462,106

 

 

5/10/2024

 

 

$

3.10

 

 

 

602,414

 

 

7/25/2024

 

 

$

3.10

 

 

 

1,064,518

 

 

11/8/2024

 

 

$

1.00

 

 

 

4,294,500

 

 

7/17/2025

 

 

$

0.75

 

 

 

9,583,334

 

 

*

 

 

$

0.90

 

 

 

9,583,334

 

 

3/25/2024

 

 

 

 

 

 

 

26,538,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* The earlier of (1) the eighteen-month anniversary of the date of issuance and (2) twenty-one trading days following the Company’s release of top-line data related to its Phase 2 double blind, placebo controlled clinical trial of AG013.

 

All outstanding warrants are classified as equity on the Company’s Balance Sheets.