Fennec Announces Exercise and Closing of Underwriters’ Option to Purchase Additional Shares

May 08, 2020

RESEARCH TRIANGLE PARK, N.C., May 08, 2020 (GLOBE NEWSWIRE) -- Fennec Pharmaceuticals Inc. (Nasdaq: FENC) (TSX: FRX), a specialty pharmaceutical company focused on the development of PEDMARKTM (a unique formulation of sodium thiosulfate ) for the prevention of platinum-induced ototoxicity from cisplatin in pediatric cancer patients, today announced that in connection with its previously completed underwritten offering on May 4, 2020 of $30,000,000 at a price of $6.25 per share, the option granted to the underwriters was exercised for 660,204 shares at a price of $6.25 per share for additional gross proceeds of $4,126,275. The sale of the additional shares under the exercise of the underwriters’ option brings the total aggregate proceeds from the offering (before deducting the underwriting discounts and offering expenses) to $34,126,275.

Cantor Fitzgerald & Co. acted as the sole book-running manager for the offering. Wedbush PacGrow acted as the co-manager.

The offering was conducted pursuant to a shelf registration statement on Form S-3 (File No. 333-221093) previously filed with the Securities and Exchange Commission (the “SEC”) on October 24, 2017 and declared effective by the SEC on November 3, 2017. A final prospectus supplement and the accompanying prospectus relating to and describing the offering was filed with the SEC. Electronic copies of the preliminary prospectus supplement and the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 6th Floor, New York, NY 10022 or by e-mail at prospectus@cantor.com.

Fennec plans to use the net proceeds from this offering for obtaining regulatory approvals, the commercial launch of PEDMARKTM, if approved, and working capital and general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities will not be offered or sold, directly or indirectly, in Canada or to any resident of Canada and, in connection with the offering, Fennec has relied upon the eligible interlisted issuer exemption under the policies of the TSX.

About Fennec Pharmaceuticals

Fennec Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the development of PEDMARK for the prevention of platinum-induced ototoxicity in pediatric patients.   Further, PEDMARK has received Orphan Drug Designation in the U.S. for this potential use.  The FDA has accepted for filing the Company’s New Drug Application (NDA) for PEDMARK™ and has granted Priority Review. Fennec has a license agreement with Oregon Health and Science University (OHSU) for exclusive worldwide license rights to intellectual property directed to sodium thiosulfate and its use for chemoprotection, including the prevention of ototoxicity induced by platinum chemotherapy, in humans. 

Forward Looking Statements

Except for historical information described in this press release, all other statements are forward-looking. These forward-looking statements include, among other things, statements regarding the Company’s anticipated use of the net proceeds from the offering.  Forward-looking statements are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks as unforeseen global instability, including political instability, or instability from an outbreak of pandemic or contagious disease, such as the novel coronavirus (COVID-19), or surrounding the duration and severity of an outbreak, that regulatory and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the Company’s patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company’s product will not be as large as expected, the Company’s product  will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and clinical studies, the Company may not meet its future capital requirements, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019. Fennec Pharmaceuticals Inc. disclaims any obligation to update these forward-looking statements except as required by law.

For further information, please contact:


Rosty Raykov

Chief Executive Officer

Fennec Pharmaceuticals Inc.

(919) 636-5144


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Source: Fennec Pharmaceuticals Inc.