Lpath Inc. (Nasdaq: LPTN) will sell 2,366,000 shares of its common stock at a price to the public of $5 per share.
San Diego-based Lpath is focused on developing lipid-targeted therapeutics, an emerging field of medicine that targets bioactive signaling lipids for the treatment of human disease.
The gross proceeds from the sale of the shares, before deducting the underwriting discount and estimated offering expenses payable by it, are expected to be approximately $11.8 million.
Lpath intends to use the net proceeds from the offering for research and development activities, operating costs, capital expenditures and for general corporate purposes, including working capital.
Lpath may also use a portion of the net proceeds to invest in or acquire businesses or technologies that it believes are complementary to its own, although Lpath said it has no current plans, commitments or agreements with respect to any acquisitions as of Dec. 14.
Pending these uses, Lpath intends to invest the net proceeds in investment grade, interest-bearing securities.
Summer Street Research Partners is acting as the sole book-running manager for the offering. Lpath has granted the underwriter a 45-day option to purchase up to an aggregate of 354,900 additional shares of common stock to cover over-allotments, if any.
The offering is expected to close on or about Dec. 19, subject to the satisfaction of customary closing conditions.
6335 Ferris Sq. Ste., A
San Diego, CA 92121