Apricus Biosciences has entered into a common stock purchase agreement with Aspire Capital Fund.
Aspire Capital will complete an initial purchase of 2,531,645 shares of common stock for proceeds of USD1.0 million and has committed to purchase up to USD6.0 million in additional shares of common stock over the next 24 months at prices based on the market price at the time of each sale.
No warrants are associated with this agreement.
"This agreement with Aspire Capital will enable Apricus to sell shares from time-to-time on market-based terms to a committed, long-time investor," says Richard Pascoe, CEO of Apricus. "The Aspire Capital team has been supportive of our strategic re-positioned focus on Vitaros as an existing shareholder. We intend to use the proceeds from this facility, along with our existing cash and expected Vitaros revenues, for working capital purposes as we work towards a potential US Vitaros approval decision in the first half of 2017."
Under the terms of the common stock purchase agreement, Apricus will control the timing and amount of any sale of shares of common stock to Aspire Capital. Aspire Capital has no right to require any sales by Apricus but is obligated to make purchases as Apricus directs, in accordance with the purchase agreement.
There are no limitations on the use of proceeds, financial covenants or restrictions on future financings and there are no rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. Apricus may terminate the purchase agreement at any time, at its discretion, without any additional cost or penalty.
