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Iterum Therapeutics Announces Expiration and Results of Rights Offering

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Iterum Therapeutics plc (Nasdaq: ITRM) announced the expiration and results of its rights offering on August 6, 2024. The company distributed 17,007,601 non-transferable subscription rights to purchase 8,503,800 units at $1.21 per unit. Each unit consisted of one ordinary share and warrants. 6,121,965 units were validly subscribed for during the offering, with an additional 5,091,550 units exercised through over-subscription privileges. Iterum expects to receive gross proceeds of approximately $7.4 million, with estimated expenses of $1.1 million. The company plans to deliver the ordinary shares and warrants to rights holders and the warrant agent, respectively, on or about August 9, 2024.

Iterum Therapeutics plc (Nasdaq: ITRM) ha annunciato la scadenza e i risultati della sua offerta di diritti il 6 agosto 2024. L'azienda ha distribuito 17.007.601 diritti di sottoscrizione non trasferibili per acquistare 8.503.800 unità a $1,21 per unità. Ogni unità era composta da un'azione ordinaria e da warrants. 6.121.965 unità sono state sottoscritte validamente durante l'offerta, con ulteriori 5.091.550 unità esercitate tramite i diritti di sovrascrizione. Iterum prevede di ricevere proventi lordi di circa $7,4 milioni, con spese stimate di $1,1 milioni. La società prevede di consegnare le azioni ordinarie e i warrants ai titolari dei diritti e all'agente dei warrants, rispettivamente, intorno al 9 agosto 2024.

Iterum Therapeutics plc (Nasdaq: ITRM) anunció la expiración y los resultados de su oferta de derechos el 6 de agosto de 2024. La compañía distribuyó 17.007.601 derechos de suscripción no transferibles para comprar 8.503.800 unidades a $1.21 por unidad. Cada unidad consistía en una acción ordinaria y warrants. 6.121.965 unidades fueron suscritas válidamente durante la oferta, con un adicional de 5.091.550 unidades ejercidas a través de privilegios de sobre suscripción. Iterum espera recibir ingresos brutos de aproximadamente $7.4 millones, con gastos estimados de $1.1 millones. La compañía planea entregar las acciones ordinarias y los warrants a los titulares de derechos y al agente de warrants, respectivamente, alrededor del 9 de agosto de 2024.

Iterum Therapeutics plc (Nasdaq: ITRM)는 2024년 8월 6일 권리 공모의 만료와 결과를 발표했습니다. 회사는 17,007,601개의 양도할 수 없는 청약권을 발행하여 8,503,800개의 유닛을 단가 $1.21에 구매할 수 있도록 했습니다. 각 유닛은 보통주 1주와 워런츠로 구성되었습니다. 6,121,965유닛이 공모 기간 동안 유효하게 청약되었으며, 추가로 5,091,550유닛이 초과 청약권을 통해 행사되었습니다. Iterum은 약 740만 달러의 총 수익을 예상하고 있으며, 예상 비용은 110만 달러입니다. 회사는 2024년 8월 9일경에 각각 권리 보유자와 워런츠 대리인에게 보통주와 워런츠를 전달할 계획입니다.

Iterum Therapeutics plc (Nasdaq: ITRM) a annoncé l'expiration et les résultats de son offre de droits le 6 août 2024. La société a distribué 17.007.601 droits de souscription non transférables pour acheter 8.503.800 unités au prix de $1,21 par unité. Chaque unité était composée d'une action ordinaire et de bons de souscription. 6.121.965 unités ont été valablement souscrites pendant l'offre, avec un supplément de 5.091.550 unités exercées par le biais de droits de sursouscription. Iterum s'attend à recevoir environ $7,4 millions de produits bruts, avec des dépenses estimées à $1,1 million. La société prévoit de livrer les actions ordinaires et les warrants aux détenteurs de droits et à l'agent des warrants, respectivement, autour du 9 août 2024.

Iterum Therapeutics plc (Nasdaq: ITRM) gab am 6. August 2024 das Ende und die Ergebnisse seines Bezugsangebots bekannt. Das Unternehmen verteilte 17.007.601 nicht übertragbare Bezugsrechte zum Kauf von 8.503.800 Einheiten zu einem Preis von $1,21 pro Einheit. Jede Einheit bestand aus einer Stammaktie und Warrants. 6.121.965 Einheiten wurden während des Angebots gültig gezeichnet, wobei zusätzlich 5.091.550 Einheiten durch Überzeichnungsrechte ausgeübt wurden. Iterum erwartet, brutto Einnahmen von etwa $7,4 Millionen zu erhalten, mit geschätzten Kosten von $1,1 Millionen. Das Unternehmen plant, die Stammaktien und Warrants am oder um den 9. August 2024 an die Bezugsberechtigten und den Warrants-Agenten zu übergeben.

Positive
  • Raised approximately $7.4 million in gross proceeds from the rights offering
  • Full subscription of available units, including over-subscription requests
Negative
  • Estimated expenses of $1.1 million related to the rights offering

Insights

Iterum Therapeutics' rights offering has yielded mixed results. The company raised $7.4 million in gross proceeds, which is significant for a small-cap biotech but comes at the cost of substantial dilution. With $1.1 million in estimated expenses, the net proceeds of $6.3 million will provide some short-term financial relief.

However, the low subscription rate (71.9% of available Units) suggests lukewarm investor confidence. The complex structure of the offering, including multiple warrant types, may have deterred some investors. The additional dilution from potential warrant exercises could further pressure the stock price in the coming months.

Investors should closely monitor how Iterum utilizes these funds to advance its antibiotic pipeline, as efficient capital allocation will be important for the company's long-term prospects in the competitive pharmaceutical sector.

While this rights offering doesn't directly impact Iterum's clinical progress, it does provide crucial funding for the company's antibiotic development programs. The focus on multi-drug resistant pathogens is particularly relevant given the growing global concern over antibiotic resistance.

However, the modest amount raised may limit the scope of Iterum's research and development activities. It's essential to see how the company prioritizes its pipeline with these funds. Investors should watch for upcoming clinical milestones, especially regarding Iterum's lead candidate, to gauge the potential return on this capital raise.

The lukewarm response to the offering might reflect investor skepticism about the company's prospects or the broader challenges in antibiotic development. Iterum will need to demonstrate clear clinical progress to rebuild investor confidence and secure future funding on more favorable terms.

DUBLIN and CHICAGO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Iterum Therapeutics plc (Nasdaq: ITRM) (the “Company”), a clinical-stage pharmaceutical company focused on developing next generation oral and IV antibiotics to treat infections caused by multi-drug resistant pathogens in both community and hospital settings, today announced that the subscription period of its previously announced rights offering (the “Rights Offering”) expired at 5:00 p.m., Eastern Time, on August 6, 2024. As previously disclosed, the Company distributed, at no charge, subscription rights to the Company’s shareholders and holders of warrants that had contractual rights to participate in the Rights Offering which were not waived (each, an “eligible warrant holder” and collectively, the “eligible warrant holders”) as of 5:00 p.m., Eastern Time, on July 16, 2024 (the “Record Date”).

The Company distributed an aggregate of 17,007,601 non-transferable subscription rights to purchase an aggregate of 8,503,800 units (“Units”) at a subscription price of $1.21 per whole Unit, consisting of (a) one ordinary share, (b) a warrant to purchase 0.50 ordinary shares, at an exercise price of $1.21 per whole ordinary share from the date of issuance through its expiration one year from the date of issuance (the “1-year warrants”) and (c) a warrant to purchase one ordinary share, at an exercise price of $1.21 per whole ordinary share from the date of issuance through its expiration five years from the date of issuance (the “5-year warrants” and, together with the 1-year warrants, the “warrants”). Each shareholder and holder of eligible warrants received one subscription right for every ordinary share owned and every ordinary share issuable upon exercise of eligible warrants at 5:00 p.m., Eastern Time, on the Record Date. Each subscription right entitled its holder to purchase 0.50 Units, at a subscription price of $0.605 per 0.50 Units (the “Subscription Price”), consisting of (i) 0.50 ordinary shares, (ii) a 1-year warrant to purchase 0.25 ordinary shares and (iii) a 5-year warrant to purchase 0.50 ordinary shares, which the Company refers to as the “basic subscription right.”

Holders who fully exercised their basic subscription rights were entitled to exercise an over-subscription privilege to subscribe for and purchase, at the Subscription Price, additional Units that remain unsubscribed as a result of unexercised basic subscription rights (the “over-subscription privilege”), subject to proration and share ownership limitations.

During the Rights Offering, rights holders validly subscribed for 6,121,965 Units at the Subscription Price. Subscription rights that were not properly exercised by 5:00 p.m., Eastern Time, on August 6, 2024, expired and may no longer be exercised. As sufficient Units were available after the expiration of the subscription period to satisfy all over-subscription privilege requests, the Company honored all over-subscription privilege requests in full. A total of 5,091,550 Units were validly exercised pursuant to the over-subscription privilege. The Company expects to deliver the ordinary shares underlying the Units purchased in the Rights Offering to rights holders on or about August 9, 2024, and expects to deliver the 1-year warrants and 5-year warrants comprising the Units purchased in the Rights Offering to the warrant agent on or about August 9, 2024.

Based on these results, the Company estimates that it will receive aggregate gross proceeds of approximately $7.4 million, not including estimated expenses relating to the Rights Offering and payable by the Company of approximately $1.1 million.

Maxim Group LLC acted as dealer-manager for the Rights Offering. Questions about the Rights Offering may be directed to Maxim Group LLC, the dealer-manager for the Rights Offering, at 300 Park Avenue, New York, NY 10022, Attention Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3745.

A registration statement on Form S-1 (File No. 333-280045) (as amended, the “Registration Statement”) relating to the Rights Offering has been filed with and declared effective by the U.S. Securities and Exchange Commission (the “SEC”). The Rights Offering was made only by means of a prospectus, copies of which were delivered to shareholders and eligible warrant holders of record as of 5:00 p.m., Eastern Time, on the Record Date. A copy of the Registration Statement and the final prospectus can also be accessed through the SEC’s website at www.sec.gov or be obtained from the information agent for the Rights Offering, Georgeson LLC, by calling (866) 920-4401 (toll free in the U.S. and Canada) or (781) 896-6947 (for calls outside the U.S. and Canada).

This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units, ordinary shares, warrants or any other securities, nor will there be any sale of Units, ordinary shares, warrants or any other securities in any state or other 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, including under the sanctions laws and regulations of the European Union or the United States of America.

About Iterum Therapeutics plc

Iterum Therapeutics plc is a clinical-stage pharmaceutical company dedicated to developing differentiated anti-infectives aimed at combatting the global crisis of multi-drug resistant pathogens to significantly improve the lives of people affected by serious and life-threatening diseases around the world. Iterum Therapeutics is advancing the development of its first compound, sulopenem, a novel penem anti-infective compound, with an oral formulation and IV formulation. Sulopenem has demonstrated potent in vitro activity against a wide variety of gram-negative, gram-positive and anaerobic bacteria resistant to other antibiotics. Iterum Therapeutics has submitted an NDA for oral sulopenem for the treatment of uncomplicated urinary tract infections in adult women, which has been accepted for review by the U.S. Food and Drug Administration and has received Qualified Infectious Disease Product (QIDP) and Fast Track designations for its oral and IV formulations of sulopenem in seven indications.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s plans, strategies and prospects for its business, including the development, therapeutic and market potential of sulopenem, the estimated net proceeds and completion of the Rights Offering. In some cases, forward-looking statements can be identified by words such as “may,” “believes,” “intends,” “seeks,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “would,” “will,” “future,” “potential” or the negative of these or similar terms and phrases. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements include all matters that are not historical facts. Actual future results may be materially different from what is expected due to factors largely outside the Company’s control, including whether the conditions for the closing of the Rights Offering will be satisfied, the uncertainties inherent in the initiation and conduct of clinical and non-clinical development, changes in regulatory requirements or decisions of regulatory authorities, the timing of approval of any submission, changes in public policy or legislation, commercialization plans and timelines, if oral sulopenem is approved, the actions of third-party clinical research organizations, suppliers and manufacturers, the accuracy of the Company’s expectations regarding how far into the future the Company’s cash on hand will fund the Company’s ongoing operations, the sufficiency of the Company’s cash resources and the Company’s ability to continue as a going concern, the Company’s ability to maintain listing on the Nasdaq Capital Market, risks and uncertainties concerning the outcome, impact, effects and results of the Company’s pursuit of strategic alternatives, including the terms, timing, structure, value, benefits and costs of any strategic process and the Company’s ability to complete one, whether on attractive terms or at all, the price of the Company’s securities, the expected use of proceeds from the Rights Offering and other risks and uncertainties discussed under the caption “Risk Factors” in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 filed with the SEC, and other documents filed with the SEC from time to time. Forward-looking statements represent the Company’s beliefs and assumptions only as of the date of this press release. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Investor Contact:
Judy Matthews
Chief Financial Officer
312-778-6073
IR@iterumtx.com


FAQ

What were the results of Iterum Therapeutics' (ITRM) rights offering in August 2024?

Iterum Therapeutics' rights offering resulted in 6,121,965 units being validly subscribed for, with an additional 5,091,550 units exercised through over-subscription privileges. The company expects to receive gross proceeds of approximately $7.4 million.

How many subscription rights did Iterum Therapeutics (ITRM) distribute in its rights offering?

Iterum Therapeutics distributed 17,007,601 non-transferable subscription rights to purchase 8,503,800 units at $1.21 per unit.

When will Iterum Therapeutics (ITRM) deliver the shares and warrants from the rights offering?

Iterum Therapeutics expects to deliver the ordinary shares and warrants to rights holders and the warrant agent, respectively, on or about August 9, 2024.

What was the subscription price for Iterum Therapeutics' (ITRM) rights offering units?

The subscription price for Iterum Therapeutics' rights offering was $1.21 per whole unit, or $0.605 per 0.50 units.

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