Osmotica Pharmaceuticals plc (OSMT) stock was rising in the premarket following the announcement of the closing of a $35 million underwritten public offering. OSMT stock price saw a push of 1.99% to reach $2.05 a share at the time of this writing. The stock was gloomy in the previous trading session and went up by 1.99% at closing. Let’s explore more about this stock.
Osmotica Pharmaceuticals is a biotech stock that develops and commercializes pharmaceutical products in Argentina, Hungary, and United States. Its promoted products include M-72 for the treatment of hyperactivity disorder and Osmolex ER for Parkinson’s disease. Furthermore, the company is also involved in the development of women’s health products. Its headquarters are in Bridgewater, New Jersey.
Underwritten Public Offering:
OSMT stock today announced the closing of an underwritten public offering of 14,000,000 ordinary shares of its common stock and its warrant to buy 14,000,000 ordinary shares. The offering price was $2.50 per share and accompanying warrant. The exercise price of warrants is 3.10 per share. The warrants are immediately exercisable and will expire after three- and half-year period from the issuance date. OSMT stock also granted a 30-day option to the underwriter to buy additional shares and warrants to purchase additional 2,100,000 ordinary shares. The underwriter exercised its option on October 11, 2021, and purchased additional warrants to purchase up to 2,100,000 ordinary shares.
Net proceeds resulted from this offering were $35 million before deducting underwriting discounts and commissions and other offering-related expenses.
OSMT stock announced Debt Financing:
Back in the previous week on October 7, 2021, OSMT stock did announce that it has signed a purchase agreement for $100 million of senior secured notes with funds that Athyrium Capital Management will manage. After meeting certain conditions, OSMT stock will issue $55 million of senior secured notes. $20 million additional notes will be available to OSMT stock by October 2022 upon minimum Upneeq revenues achievement.
OSMT closed the sale of Legacy Business to Alora Pharmaceuticals:
On August 30, 2021, OSMT stock closed the previously announced sale of its legacy business. The sale included Osmotica’s subsidiaries dedicated to its legacy business along with Marietta, Georgia, manufacturing facility, to Alora Pharmaceuticals, LLC. The proceeds from this sale were estimated at approximately $111 million.
Conclusion:
OSMT stock is hot among investors in the stock market after the announcement of the closing of $35 million underwritten public offering. The stock has lost almost 53% year to date and hence investors should do deep research before making any decision.
