Iterum Therapeutics Announces $52 Million Private Placement with New and Existing Investors

DUBLIN, Ireland and CHICAGO, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Iterum Therapeutics plc (Nasdaq: ITRM) (the “Company”), a clinical-stage pharmaceutical company focused on developing next generation oral and IV antibiotics to treat infections caused by multi-drug resistant pathogens in both community and hospital settings, today announced that it has entered into a securities purchase agreement, dated as of January 16, 2020, with a group of accredited investors for an approximately $51.9 million private placement, which is expected to close within five business days of the execution date, subject to the satisfaction of customary closing conditions.

Pursuant to the terms of the securities purchase agreement, Iterum Therapeutics Bermuda Limited, a wholly-owned subsidiary of the Company (the “Issuer”), will sell units (the “Units”) comprised of approximately (i) $51.9 million aggregate principal amount of its 6.500% exchangeable senior subordinated notes due 2025 (the “Exchangeable Notes”) and (ii) $0.1 million aggregate principal amount of its limited recourse royalty-linked senior subordinated notes (the “RLNs” and, together with the Exchangeable Notes, the “Securities”). Each Unit will consist of $1,000 principal amount of Exchangeable Notes and 50 RLNs. The Units will be sold at a price of $1,000 per Unit at an initial exchange rate of 1,000 shares per $1,000 principal amount of Exchangeable Notes (equivalent to an initial exchange price of approximately $1.00 per ordinary share).  The Exchangeable Notes will be exchangeable for cash, ordinary shares of the Company or a combination of both, pursuant to the terms and conditions of the indenture governing the Exchangeable Notes.  The RLNs will entitle holders to payments based on a percentage of the Company’s net revenues from potential U.S. sales of specified sulopenem products pursuant to the terms and conditions of the indenture governing the RLNs.  Pursuant to the indenture governing the RLNs, the potential aggregate payments for all RLNs will either be 15% or 20% of net revenues from U.S. sales of such products, depending on the indication potentially approved by the U.S. Food and Drug Administration, and will be capped at eight times the aggregate investment amount for all Units.  The Issuer’s obligations under the Securities will be guaranteed by the Company and its wholly-owned subsidiaries.