Zosano Pharma Announces $11 Million Registered Direct Offering Priced At-the-Market

FREMONT, Calif., March 05, 2020 (GLOBE NEWSWIRE) -- Zosano Pharma, Inc. (Nasdaq:ZSAN) (“Zosano”), a clinical-stage biopharmaceutical company, today announced that it has entered into definitive agreements with institutional investors for the issuance and sale in a registered direct offering of 11,903,506 shares of its common stock and warrants to purchase up to 11,903,506 shares of its common stock, at a combined purchase price of $0.9275 per share and associated warrant, for aggregate gross proceeds of approximately $11 million in a registered direct offering priced at-the-market under Nasdaq rules. The warrants have an exercise price of $0.8025 per share, are immediately exercisable and will expire five years from the date of issuance.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

This offering is expected to close on or about March 6, 2020, subject to customary closing conditions.  Zosano intends to use the net proceeds from this offering for pre-commercialization activities and for general working capital and corporate purposes.   

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on March 27, 2019. The offering is being made only by means of a written prospectus and prospectus supplement that will form a part of the registration statement. A final prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.  Alternatively, when available, electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (646) 975-6996.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Zosano Pharma

Zosano Pharma Corporation is a clinical-stage biopharmaceutical company focused on developing products where rapid administration of approved molecules with established safety and efficacy profiles may provide substantial benefit to patients, in markets where patients remain underserved by existing therapies. The company’s intracutaneous microneedle system technology consists of titanium microneedles coated with drug that are designed to enable rapid systemic administration of therapeutics to patients. Zosano’s lead product candidate is Qtrypta™ (M207), which is a proprietary formulation of zolmitriptan delivered via its intracutaneous microneedle system technology, as an acute treatment for migraine. The company anticipates that many of its current and future development programs may enable the company to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization.

Forward-Looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts regarding Zosano, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor of the Private Securities Litigation Reform Act of 1995, including regarding the offering, the expected closing date of the offering and the intended use of proceeds from the offering. Such forward-looking statements involve substantial risks and uncertainties that could cause Zosano’s future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties related to the completion of the offering on the anticipated terms or at all and the potential use of proceeds therefrom.  Zosano undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Zosano’s business in general, please refer to Zosano’s prospectus supplement to be filed with the SEC, including the documents incorporated by reference therein, which include Zosano’s Annual Report on Form 10-K filed with the SEC on March 25, 2019 and Zosano’s other periodic reports filed with the SEC. 

Zosano Contact:

Christine Matthews
Interim Chief Financial Officer
(510) 745-1200

PR Contact:

Sylvia Wheeler and Alexandra Santos
swheeler@wheelhouselsa.com/asantos@wheelhouselsa.com