Osmotica Under Pressure On $35M Equity Raise To Pay Off Debt

Osmotica Pharmaceuticals plc OSMT has priced its secondary public offering of 14 million shares and warrants to purchase up to 14 million shares at $2.5/piece.
Gross proceeds are expected to be $35 million. The offer price represents a steep discount of 18% from the last close price of $3.05 on Wednesday and will close by October 12.
The warrants have an exercise price of $3.10 per share, are immediately exercisable, and will expire three and one-half years.
Related: Osmotica Stock Surges On $170M Divestiture Deal With Alora Pharmaceuticals.
Underwriters have an option to purchase up to additional 2.1 million shares or additional warrants to purchase up to 2.1 million shares.
H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.
Osmotica will use the proceeds to repay the $30 million outstanding under the Term Loan.
See the SEC offering prospectus here.
Price Action: OSMT stock is down 40.20% at $1.83 during the premarket session on the last check Thursday.