Seelos Slips on Direct Offering

Seelos Therapeutics, Inc. (NASDAQ: SEEL), shares moved lower Friday. The New York-based Seelos, a clinical-stage biopharmaceutical company focused on the development of therapies for central nervous system disorders and rare diseases, today announced that it has entered into definitive agreements with certain institutional investors for the purchase and sale of 3,404,256 shares of its common stock in a registered direct offering and unregistered common warrants exercisable for up to an aggregate of 3,404,256 shares of common stock in a concurrent private placement at a combined purchase price of $1.175 per share and accompanying common warrant priced at-the-market under NASDAQ rules. The common warrants will have an exercise price of $1.05 per share, will be immediately exercisable upon issuance and will expire five years from the initial exercise date.

The closing of the offering is expected to occur on or about January 30, subject to the satisfaction of customary closing conditions. The gross proceeds from the offering are expected to be approximately $4.0 million, before deducting placement agent fees and other estimated offering expenses payable by the Company, excluding the proceeds, if any, from the exercise of the common warrants. The Company intends to use the net proceeds from the offering for general corporate purposes, the advancement of the development of its product candidates and to make periodic principal and interest payments under, or to repay a portion of, its outstanding convertible promissory note.

SEEL shares lapsed 10 cents, or 10%, Friday to 94 cents.

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