Item 2. Unregistered Sales of Equity Securities
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Recent Issuances of unregistered securities
On August 4, 2020, pursuant to our 2018 Equity Incentive Plan (the “2018 Plan”), we granted options to purchase 301,647 shares of our common stock at an exercise price of $2.40 per share to 4 employees and 23,332 shares of our common stock at an exercise price of $2.40 per share to 3 consultants (one of whom is also a member of our board of directors).
During fiscal quarter ended September 30, 2020, we issued an aggregate of 12,224 shares of common stock upon the exercise of previously issued stock options, for aggregate consideration of $7,558.
No underwriters were involved in the foregoing issuances of securities. The issuances of stock options and the shares of our common stock issued upon the exercise of the options were issued pursuant to written compensatory plans or arrangements with our employees, directors, and consultants, in reliance on the exemption provided by Rule 701 promulgated under the Securities Act, or pursuant to Section 4(a)(2) under the Securities Act, relating to transactions by an issuer not involving any public offering. All recipients either received adequate information about us or had access, through employment or other relationships, to such information.
Use of Proceeds
Our IPO was effected through a Registration Statement on Form S-1 (File No. 333-248687) that was declared effective by the SEC on October 1, 2020. On October 6, 2020, 3,250,000 shares of our common stock were issued and sold at a public offering price of $12.00 per share, for aggregate gross proceeds of $39.0 million. As of the date of filing this report, the offering has terminated, and all of the securities registered pursuant to the offering were sold prior to termination. Ladenburg Thalmann & Co., Inc. and Chardan Capital Markets, LLC acted as joint book-running managers.
On October 6, 2020, we received proceeds from the IPO of $36.3 million, which was net of underwriting discounts and commissions of $2.7 million. In connection with our IPO, we incurred offering expenses of $2.8 million, of which $0.3 million was paid prior to the closing of the transaction. The balance of the funds totalling $33.8 million shall be used in a manner consistent with the use of proceeds from the IPO as described in our IPO prospectus under the caption “Use of Proceeds,” which has not materially changed since the filing of our IPO prospectus with the SEC on October 5, 2020.
The foregoing offering expenses are a reasonable estimate of the expenses incurred by us in the offering and do not represent an exact amount of expenses incurred. All of the foregoing expenses were direct or indirect payments to persons other than (i) our directors, officers and their associates, (ii) persons owning 10% or more of our common stock or (iii) our affiliates.
Item 3. Defaults Upon Senior Securities
None.
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Item 4. Mine Safety Disclosures
Not applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.