Aytu BioScience, Inc. (NASDAQ: AYTU) stock slipped in the after-hours market session on Friday as it revealed, due to surging demand, the underwriter has agreed to increase the size of the previously announced public offering and purchase on a firm commitment basis 4,166,667 shares of common stock of the Company, at a price to the public of $6.00 per share, less underwriting discounts, and commissions.
The offering’s closing date will be around December 15, 2020, provided customary closing conditions are satisfied.
The Company has also granted the underwriter the right to purchase up to an additional 625,000 shares of the Company’s common stock at the public offering price, minus the underwriting discount and commission.
In total, after deducting underwriting discounts and commissions and offering costs and assuming no exercise of the underwriter’s option to purchase additional common stock, the gross proceeds to Aytu should be approximately $25.0 million.
The net proceeds from this offering will be used for working capital and other general corporate purposes.