Pulmatrix Inc (NASDAQ:PULM) Sets the Price of an Underwtitten Public Offering

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Pulmatrix Inc (NASDAQ:PULM) has fixed the price of an underwritten public offering. The company will sell about 23,500,000 units. Each unit consists of one Series A warrant to buy one share of the common stock, one share of the common stock, and one series B warrant to buy one share of the common stock.

The underwriters are also given an option to buy additional 1,150,000 units in a 30 day period to cover the allotments if needed. Pulmatrix has appointed Oppenheimer & Co. Inc as the book running manager for the public offering.

The exercise price of the Series A warrant is $0.65 for each share. It should be exercised within six months from the issue date. The exercise price of the Series B warrant is fixed at $0.75 for each share. It can be exercised within five years from the issue date.

The public need to buy the common stock, series A and B warrants together in the public offering. However, the warrants will be issued upon the completion of offering separately. The public offering will be closed on April 3, 2018.

The company is expected to mobilize funds worth $15.2 million before deducting the commissions, underwriting discounts and other expenses associated with the offering.

Pulmatrix will use the proceeds of the public offering for R&D of Pulmazole and general corporate purposes/ working capital. The public offering is as per filing to the SEC on March 28 2018.

The CEO of Pulmatrix, Mr. Robert Clarke said the company will advance the development of ISPERSE based products. Pulmazole is targeted for the treatment of fungal infections in cystic fibrosis patients and severe asthma patients. The phase 1b data of Pulmazole will be available in mid 2018. The nonclinical safety data of the PUR1800 will be available in H2, 2018.

The projected Milestones of Pulmazone in 2018

The company has started the single dose administration of the drug on humans in February 2018. Its phase 1b results will be available in Mid 2018. The study of phase 2a on the drug will begin in Q4 2018.

The company is also continuing the development activities on PUR0200 and PUR1800.

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