Enzon Pharmaceuticals Announces Key Dates for Rights Offering

CRANFORD, N.J., Sept. 15, 2020 (GLOBE NEWSWIRE) -- Enzon Pharmaceuticals, Inc. (the “Company” or “Enzon”) (OTC:ENZN) announced today the record date and expected subscription period for its previously-announced rights offering to raise proceeds of approximately $43 million.  The proceeds from the rights offering will be utilized to position the Company as a public company acquisition vehicle, where it can become an acquisition platform and more fully utilize its net operating loss tax carryforwards and enhance stockholder value.

The Company filed Amendment Number 1 to its Registration Statement on Form S-1 providing 5:00 p.m., New York City time, on September 23, 2020 as the record date.  Subject to the Registration Statement becoming effective on or about September 18, 2020, the Company intends to commence the rights offering on September 23, 2020.

Under the rights offering, holders of Enzon’s common stock will receive one transferable subscription right for each share of common stock owned.  For every 1,105 subscription rights held, stockholders will be entitled to purchase one unit at the subscription price of $1,090 per unit.  Each unit consists of one share of newly designated Series C preferred stock and 750 shares of Enzon’s common stock, all as described in the Registration Statement.

Although the subscription rights are transferable there can be no guarantee that a market will develop during the subscription period or that stockholders will be able to buy or sell additional subscription rights.  Accordingly, unless a stockholder is able to acquire additional subscription rights during the subscription period, a stockholder must own shares of common stock as of the record date, or acquire shares of common stock prior to the record date, in multiples of 1,105 in order to receive subscription rights enabling it to purchase units, as no fractional units, preferred stock or common stock will be issued.  In connection with the rights offering, Icahn Capital LP  has agreed to purchase all units that remain unsubscribed for at the end of the subscription period. 

Upon the sale of all 40,000 units available for purchase in the rights offering, the Company will have 40,000 shares of Series C preferred stock outstanding and an aggregate of 74,214,603 shares of common stock outstanding following the rights offering.

The expected calendar for the rights offering, unless extended or modified by Enzon, is as follows:

• September 23, 2020 at 5:00 PM, New York City Time:   Record Date
• September 24, 2020:   Estimated Distribution Date; Subscription Period Estimated to Begin
• October 9, 2020 at 5:00 PM, New York City Time:   Subscription Period Ends
• October 16, 2020:  Estimated Date of Distribution of Preferred and Common Stock

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