Veru Enters into Common Stock Purchase Agreement for Up to $100 Million with Lincoln Park Capital

MIAMI, FL, May 03, 2023 (GLOBE NEWSWIRE) -- Veru Inc. (NASDAQ: VERU), a late clinical stage biopharmaceutical company focused on developing novel medicines for the treatment of breast cancer and for SARS-CoV-2 and other viral ARDS-related diseases, today announced that it has entered into a common stock purchase agreement (Agreement) for the purchase of up to $100 million with Lincoln Park Capital Fund (LPC), a Chicago-based institutional investor.

Under the terms of the Agreement, LPC has committed to purchase up to $100 million of Veru’s common stock at Veru’s sole discretion from time to time over a 36-month period. Veru controls the timing and amount of any future sales of its shares and LPC is obligated to make purchases in accordance with the terms of the Agreement, subject to various limitations contained in the Agreement, including those under the Nasdaq listing rules.

The purchase price for the Company’s common stock is set forth in the Agreement and is generally based on the prevailing market prices at the time of each sale to LPC. There are no upper limits to the price per share LPC may pay and LPC has agreed not to enter into or effect any direct or indirect short selling or hedging of Veru’s common stock. No warrants are being issued in this transaction and the Agreement does not contain any rights of first refusal, participation rights, penalties, or liquidated damages provisions in favor of any party.

"We are pleased to enter into this transaction with LPC and believe that this agreement allows us to access capital in a very efficient manner," said Mitchell Steiner, M.D., Chairman, President and Chief Executive Officer of Veru. “We believe this purchase commitment further enhances our financial flexibility and is aligned with our long-term strategy for shareholder value creation. We intend to use any net proceeds from the sale of our common stock to LPC for working capital and for general corporate purposes, and to advance our most important drug candidates, enobosarm for 2^nd line AR+ ER+ HER2- metastatic breast cancer and sabizabulin for SARS-CoV-2 viral ARDS, that could yield Phase 3 clinical trial data in 2024.”