Osmotica Pharma plummets on $35 mln stock, warrants offering

RVL Pharmaceuticals

07/10/2021 10:54

** Osmotica Pharmaceuticals  OSMT.O  shares down ~30% near
record lows premarket as co raises equity
    ** OSMT sells 14 mln shares and warrants to purchase up to
additional 14 mln shares at $2.50, raises $35 mln  urn:newsml:reuters.com:*:nGNX9m4kRc
    ** 3-1/2-yr warrants have exercise price of $3.10, which is
4 cents above stock's last close
    ** Co to use net offering proceeds to repay all or portion
of outstanding term loan, per prospectus filing https://www.sec.gov/Archives/edgar/data/1739426/000110465921123710/tm2129380-1_424b5.htm#sUOP
    ** OSMT has ~83.43 mln shares outstanding and ~41 mln of
free float, per Refinitiv data
    ** H.C. Wainwright sole bookrunner for offering
    ** OSMT's flagship product Upneeq treats acquired
blepharoptosis, or droopy eyelid, in adults
    ** Stock has fallen 26% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))