Eyenovia (NASDAQ:EYEN), Inc., a pharmaceutical company specializing in preparations, has entered into a significant agreement that has led to the exercise of existing warrants and the expected issuance of new warrants, according to an 8-K filing with the Securities and Exchange Commission.
On January 16, 2025, the company agreed to lower the exercise price of previously issued warrants, which prompted an institutional investor to exercise all of these warrants for an aggregate of 15,769,445 shares of common stock.
In return for the exercise of these existing warrants, Eyenovia will issue new Series A and Series B Common Stock Purchase Warrants, equal to 200% of the number of shares issued through the exercise of the existing warrants. These new warrants, with an exercise price of $0.0659 per share, are expected to become exercisable upon approval by the company's stockholders, which will be sought at a meeting within 120 days of the issuance.
The company anticipates gross proceeds of approximately $1 million from the exercise of the existing warrants. The existing warrants and the shares underlying them were registered under a previous Form S-3 registration statement.
The new warrants and any shares underlying them will be issued in a private placement and will be subject to a new registration statement for resale, which the company commits to file by February 28, 2025, and to become effective within 120 days thereafter.
Eyenovia has agreed to a 30-day lock-up period post-issuance of the new warrants, during which it will not issue any common stock or common stock equivalents. Additionally, the company is restricted from engaging in any "Variable Rate Transaction (JO:TCPJ)" for 90 days following the new warrant issuance.
Chardan Capital Markets LLC acted as the exclusive financial advisor for the transactions and will receive a fee based on the gross proceeds from the inducement offer. The issuance of the new warrants and shares upon their exercise is in accordance with Section 4(a)(2) of the Securities Act of 1933, as amended, which allows for the sale of securities without registration under certain conditions.
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