PaxMedica secures immediate exercise of warrants

PaxMedica announced the entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 4,423,080 shares of common stock of the originally issued in November 2023, having an exercise price of 1.30 per share, at a reduced exercise price of $0.20 per share. The shares of common stock issuable upon exercise of the warrants are registered pursuant to an effective registration statement on Form S-1. The offering is expected to close on or about September 4, 2024, subject to satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. In consideration for the immediate exercise of the warrants for cash, the Company will issue new unregistered warrants to purchase up to 8,846,160 shares of common stock. The new warrants will have an exercise price of $0.20 per share, will be immediately exercisable upon issuance and will have a term of five years from the issuance date. The gross proceeds to the Company from the exercise of the warrants are expected to be $884,616, prior to deducting placement agent fees and estimated offering expenses. The Company intends to use the net proceeds from the offering for the continuing development of PAX-101, working capital, and general corporate purposes.