ProPhase Labs Announces At-The-Market Equity Facility
September 23 2020 - 4:10PM
ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today
announced that it has entered into an at-the-market (“ATM”) equity
offering sales agreement (the “Sales Agreement”) with
A.G.P./Alliance Global Partners (“A.G.P.”), under which the Company
may, from time to time, offer and sell shares of its common stock
through AGP, as sales agent.
Sales of common stock, if any, under the Sales
Agreement will be made by any method deemed to be an “at-the-market
offering” as defined in Rule 415 of the Securities Act of 1933, as
amended, by means of ordinary brokers’ transactions on the Nasdaq
Stock Market and such other sales as agreed upon by the Company and
A.G.P. Sales may be made at market prices prevailing at the time of
the sale, at prices related to prevailing market prices or at
negotiated prices and, as a result, sales prices may vary.
The Company intends to use the net proceeds from
this offering for working capital and general corporate purposes,
which may include capital expenditures, product development and
commercialization expenditures, and acquisitions of companies,
businesses, technologies and products within and outside the
consumer products industry.
The shares of common stock to be sold through
the ATM facility will be offered pursuant to a shelf registration
statement previously filed with and declared effective by the
Securities and Exchange Commission (the “SEC”). A prospectus
supplement and accompanying prospectus relating to the offering
have been filed with the SEC. Prospective investors should read the
prospectus, the prospectus supplement and other documents the
Company has filed with the SEC (some of which are incorporated by
reference into the prospectus and prospectus supplement) for more
complete information about the Company and the ATM facility. Copies
of the prospectus, the prospectus supplement and the registration
statement may be obtained, without charge, by visiting the SEC’s
website at www.sec.gov or by contacting: A.G.P./Alliance Global
Partners, at 590 Madison Avenue, 28th Floor, New York, NY 10022, or
by telephone at (212) 624-2060, or by email at
prospectus@allianceg.com.
Ted Karkus, Chairman and CEO of the Company
stated “Earlier this month we also completed a debt financing
which, when combined with our already-existing working capital,
provided the Company with approximately $20 million of working
capital (inclusive of the anticipated proceeds from the previously
announced pending sale of the Company’s Doylestown, Pennsylvania
facilities). This ATM facility provides us with enhanced
flexibility and the ability to quickly access additional equity
capital when market conditions are strong. Our increased access to
capital enables the Company to pursue significant strategic
transactions and opportunities.”
This press release does not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described in this press release, nor will there be any
sale of securities in any state or other jurisdiction in which such
offer, solicitation or sale is not permitted.
Forward-Looking Statements
Except for the historical information contained
herein, this document contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to the Company’s expectations
regarding the Company’s anticipated timing and use of the ATM
facility and proceeds from the offering. Management believes that
these forward-looking statements are reasonable as and when made.
However, such forward-looking statements involve known and unknown
risks, uncertainties, and other factors that may cause actual
results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include,
but are not limited to the risk factors listed from time to time in
our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
any subsequent SEC filings.
About the Company
We are a manufacturing and marketing company
with deep experience with OTC consumer healthcare products and
dietary supplements. We are engaged in the research, development,
manufacture, distribution, marketing and sale of OTC consumer
healthcare products and dietary supplements in the United States.
This includes the development and marketing of dietary supplements
under the TK Supplements® brand.
In addition, the Company also continues to
actively pursue acquisition opportunities for other companies,
technologies and products inside and outside the consumer products
industry. For more information visit us at
www.ProPhaseLabs.com.
Investor Contact
Ted Karkus, Chairman and CEOProPhase Labs,
Inc.(267) 880-1111
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