Nymox Pharmaceutical Corporation (NASDAQ: NYMX) saw its shares falter Friday on the announcement it has entered into definitive agreements with institutional and accredited investors for the purchase and sale of 3,030,304 common shares at a purchase price of $1.65 per share in a registered direct offering for gross proceeds of approximately $5 million before deducting placement agent fees and expenses.
The Company, based out of Irvine, Calif., has also agreed to issue to the investors, in a concurrent private placement, unregistered warrants to purchase up to an aggregate of 3,030,304 common shares.
The warrants are exercisable immediately at an exercise price of $2.00 per share and will expire five years from the date of an effective registration statement covering the shares underlying the warrants.
The closing of the offering is expected to occur on or about March 22, subject to the satisfaction of customary closing conditions.
Nymox intends to use the proceeds for general corporate purposes, including working capital.
Nymox specializes in the research and development of therapeutics and diagnostics, with a particular emphasis on products targeted for the unmet needs of the rapidly aging male population in developed economies.
The Company’s lead drug candidate for benign prostatic hyperplasia (BPH), Fexapotide Triflutate (FT) was submitted in a New Drug Application (NDA) to the U.S. Food and Drug Administration on March 3,
NYMX shares lost 60 cents, or 31.6%, to $1.30.
