Zynerba Pharmaceuticals Enters Into $20 Million Investment Agreement

Zynerba Pharmaceuticals

DEVON, PA — Zynerba Pharmaceuticals, Inc. (Nasdaq: ZYNE) announced it recently entered into an equity purchase agreement for up to $20 million with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor.

Under the terms of the agreement, Zynerba will have the right in its sole discretion, but not the obligation, to sell to LPC up to $20 million worth of shares of its common stock over the 36-month term of the agreement. Zynerba controls the timing and amount of any future sales of its shares of common stock and LPC is obligated to make purchases in accordance with the terms of the purchase agreement, subject to various limitations including those under the Nasdaq listing rules. Any common stock that is sold by Zynerba will occur at a purchase price that is based on the market prices prevailing at the time of each sale to LPC. There is no upper limit to the price per share that LPC may pay for future stock issuances under the purchase agreement, and LPC has agreed not to cause or engage in any direct or indirect short selling or hedging of Zynerba’s common stock. No warrants are being issued in this transaction and the purchase agreement does not contain any rights of first refusal, participation rights, penalties or liquidated damages provisions in favor of any party. Zynerba may terminate the purchase agreement at any time, at its sole discretion, without any cost or penalty.

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The Company expects this commitment from LPC will provide financial flexibility and is aligned with Zynerba’s long-term strategy for value creation. Zynerba intends to use any net proceeds from the sale of its common stock to LPC for working capital and general corporate purposes, including research and development expenses and capital expenditures.

“We are excited to enter into this transaction with Lincoln Park Capital and believe that this agreement provides us with another opportunity to access capital in an efficient manner,” said Jim Fickenscher, Chief Financial Officer and Vice President, Corporate Development of Zynerba. “The financial flexibility provided by this agreement will further support our clinical development efforts with Zygel in Fragile X syndrome and 22q11.2 deletion syndrome.”

Additional information regarding the purchase agreement is set forth in a Current Report on Form 8-K, which Zynerba filed today with the Securities and Exchange Commission.

This Company asserts that its announcement shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The offering can be made only by means of the prospectus supplement and accompanying prospectus, copies of which may be obtained at the SEC’s website at www.sec.gov or by request from Zynerba Pharmaceuticals at 80 W. Lancaster Avenue, Suite 300, Devon, Pennsylvania 19333 or by telephone at (484) 581-7505.

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