60 Degrees Pharmaceuticals, Inc. Announces $4 Million Private Placement Priced At-the-Market Under Nasdaq Rules
September 04 2024 - 8:00AM
60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) (“60P” or
the “Company”), a pharmaceutical company focused on developing new
medicines for infectious diseases, today announced that it has
entered into definitive agreements for the issuance and sale of an
aggregate of 2,898,551 shares of its common stock (or common stock
equivalents in lieu thereof), series A warrants to purchase up to
2,898,551 shares of common stock and short-term series B warrants
to purchase up to 2,898,551 shares of common stock at a purchase
price of $1.38 per share (or per common stock equivalent in lieu
thereof) and accompanying warrants in a private placement priced
at-the-market under Nasdaq rules. The series A warrants and
short-term series B warrants will have an exercise price of $1.38
per share and will be exercisable beginning on the effective date
of stockholder approval of the issuance of the shares of common
stock upon exercise of the warrants (the “Stockholder Approval”).
The series A warrants will expire five years from the Stockholder
Approval and the short-term series B warrants will expire eighteen
months from the Stockholder Approval. The closing of the offering
is expected to occur on or about September 5, 2024, subject to the
satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the
exclusive placement agent for the private placement.
The gross proceeds to 60P from the offering are
expected to be approximately $4 million, before deducting the
placement agent’s fees and other offering expenses payable by 60P,
and excluding the proceeds, if any, from the exercise of the
warrants. 60P intends to use the net proceeds from the offering for
working capital, general operations, commercialization activities
related to Arakoda, and the Company’s research and development
program.
The securities described above are being offered
in a private placement under Section 4(a)(2) of the Securities Act
of 1933, as amended (the “Securities Act”), and/or Regulation D
promulgated thereunder and, along with the shares of common stock
underlying the warrants, have not been registered under the
Securities Act, or applicable state securities laws. Accordingly,
the securities described above, including the shares of common
stock underlying the warrants, may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state
securities laws. Pursuant to a registration rights agreement, the
Company has agreed to file a resale registration statement covering
the securities described above.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the securities in this
offering, nor shall there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such state or other
jurisdiction.
About 60 Degrees Pharmaceuticals, Inc.
60 Degrees Pharmaceuticals, Inc., founded in
2010, specializes in developing and marketing new medicines for the
treatment and prevention of infectious diseases that affect the
lives of millions of people. 60 Degrees Pharmaceuticals,
Inc. achieved FDA approval of its lead product, ARAKODA®
(tafenoquine), for malaria prevention, in 2018. 60 Degrees
Pharmaceuticals, Inc. also collaborates with prominent
research organizations in the U.S., Australia,
and Singapore. The 60 Degrees Pharmaceuticals,
Inc. mission has been supported through in-kind funding from
the U.S. Department of Defense and private institutional
investors including Knight Therapeutics Inc., a Canadian-based
pan-American specialty pharmaceutical company. 60 Degrees
Pharmaceuticals, Inc. is headquartered in Washington
D.C., with a majority-owned subsidiary in Australia. Learn
more at www.60degreespharma.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release may contain “forward-looking
statements” within the meaning of the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect the current view about
future events, and include, among others, statements related to the
completion of the private placement, the satisfaction of customary
closing conditions related to the private placement, the receipt of
Stockholder Approval and the intended use of proceeds from the
private placement. When used in this press release, the words
“anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,”
“plan,” or the negative of these terms and similar expressions, as
they relate to us or our management, identify forward-looking
statements. Forward-looking statements are neither historical facts
nor assurances of future performance. Instead, they are based only
on our current beliefs, expectations and assumptions
regarding the future of our business, future plans and strategies,
projections, anticipated events and trends, the economy, activities
of regulators and future regulations and other future conditions.
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Our actual results and financial condition
may differ materially from those indicated in the forward-looking
statements. Therefore, you should not rely on any of these
forward-looking statements. Important factors that could cause our
actual results and financial condition to differ materially from
those indicated in the forward-looking statements include, among
others, the following: market and other conditions; there is
substantial doubt as to our ability to continue on a going-concern
basis; we might not be eligible for Australian government research
and development tax rebates; if we are not able to successfully
develop, obtain U.S. Food and Drug Administration (FDA) approval
for, and provide for the commercialization of non-malaria
prevention indications for tafenoquine (ARAKODA® or other
regimen) or Celgosivir in a timely manner, we may not be able to
expand our business operations; we may not be able to successfully
conduct planned clinical trials; and we have no manufacturing
capacity which puts us at risk of lengthy and costly delays of
bringing our products to market. More detailed information
about the Company and the risk factors that may affect the
realization of forward-looking statements is set forth in the
Company’s filings with the Securities and Exchange
Commission (“SEC”), including the information contained in our
Annual Report on Form 10-K filed with
the SEC on April 1, 2024, and our
subsequent SEC filings. Investors and security holders
are urged to read these documents free of charge on the SEC’s web
site at www.sec.gov. As a result of these matters, changes in
facts, assumptions not being realized or other circumstances, the
Company’s actual results may differ materially from the expected
results discussed in the forward-looking statements contained in
this press release. Any forward-looking statement made by us in
this press release is based only on information currently available
to us and speaks only as of the date on which it is made. We
undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise, except is required by law.
Investor Contact: Patrick
Gaynespatrickgaynes@60degreespharma.com(310) 989-5666
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