Quarterly report pursuant to Section 13 or 15(d)

Equity Offerings

v3.20.2
Equity Offerings
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Equity Offerings

 

Note 11—Equity Offerings

In May 2020, the Company completed a public offering (the “May 2020 Offering”) of an aggregate of 22,222,222 shares of common stock, together with accompanying warrants to purchase up to an aggregate of 22,222,222 shares of common stock, at a public offering price of $0.45 per share and accompanying warrant. Each share of common stock was sold in the offering with one warrant to purchase one share of common stock. The warrants have an exercise price of $0.45 per share, are immediately exercisable, and expire five years following the date of issuance. Placement agent warrants were issued to purchase up to an aggregate of 1,555,555 shares of common stock, are immediately exercisable for an exercise price of $0.5625, and expire five years following the date of issuance. The Company received approximately $8.7 million in net proceeds, after deducting placement agent’s fees and other offering expenses of $1.3 million, payable by it.

 

The warrants and placement agent warrants were valued at an aggregate $3.5 million using the Black-Scholes option pricing model based on the following assumptions; expected volatility 59.86%, risk-free interest rate 0.34%, expected dividend yield 0.00% and an expected term of 2.5 years.

 

In June 2020, the Company issued 1,837,667 shares of common stock in connection with the exercise of warrants issued in the May 2020 Offering.

 

At September 30, 2020, the Company had 20,384,555 shares and 1,555,555 shares of common stock reserved for issuance pursuant to the warrants and placement agent’s warrants, respectively, issued by the Company in the May 2020 Offering, at an exercise price of $0.45 per share and $0.5625 per share, respectively.

 

In August 2020, the Company completed another public offering (the “August 2020 Offering”) of an aggregate of 34,285,714 shares of common stock, together with accompanying warrants to purchase up to an aggregate of 34,285,714 shares of common stock, at a public offering price of $0.35 per share and accompanying warrant. Each share of common stock was sold in the offering with one warrant to purchase one share of common stock. The warrants have an exercise price of $0.35 per share, are immediately exercisable, and expire five years following the date of issuance. Placement agent warrants were issued to purchase up to an aggregate of 2,399,999 shares of common stock, are immediately exercisable for an exercise price of $0.4375, and expire five years following the date of issuance. The Company received approximately $10.4 million in net proceeds, after deducting placement agent’s fees and other estimated offering expenses payable by it.

 

The warrants and placement agent warrants were valued at an aggregate $4.0 million using the Black-Scholes option pricing model based on the following assumptions; expected volatility 59.72%, risk-free interest rate 0.17%, expected dividend yield 0.00% and an expected term of 2.5 years.

 

At September 30, 2020, the Company had 34,285,714 shares and 2,399,999 shares of common stock reserved for issuance pursuant to the warrants and placement agent’s warrants, respectively, issued by the Company in the August 2020 Offering, at an exercise price of $0.35 per share and $0.4375 per share, respectively.