Addex Therapeutics Ltd (NASDAQ: ADXN) disclosed that it has inked a definitive agreement with Armistice Capital LLC. As per the agreement, the Company confirmed that it has decided to sell 3,752,202 shares in the form of 625,367 ADSs at a gross buying price of $6.50 per ADS, which equates to CHF 1.00 per share. Each ADS is representing six shares.
Addex has also decided to issue to Armistice Capital unregistered warrants to buy up to 9,230,772 shares in the form of 1,538,462 ADSs, as well as unregistered pre-funded warrants to acquire up to 5,478,570 shares in the form of 913,095 ADSs in a synchronized private arrangement. The Unregistered Warrants have an exercise price of $6.50 per ADS. It will become exercisable 60 days after their date of issuance and will terminate six years from their date of issuance.
Furthermore, the Unregistered Pre-Funded Warrants have been financed with the amount of $6.49 with $0.01 payable on exercise. In addition, the company is expecting gross profits of $10.0 million before subtracting the placement agent fees and other offering expenses. Addex is planning to use the net profit from this offering to move forward with its clinical and preclinical pipeline.
Moreover, the offering is anticipated to execute on or about December 21, 2021, dependent on the fulfillment of customary closing conditions. The shares are being issued by Addex under a "shelf" registration statement on Form F-3 that was originally submitted on April 7, 2021 and has been declared valid by SEC on April 13, 2021.