Exhibit
99.1
Aeterna
Zentaris Inc.
20,509,746 Common Shares
(no
par value per share)
Amended
and Restated Underwriting Agreement
February
16, 2021
H.C.
Wainwright & Co., LLC
As
Representative of the several Underwriters listed in Schedule A hereto
430
Park Avenue, 4th Floor
New
York, NY 10022
Ladies
and Gentlemen:
Aeterna
Zentaris Inc., a company incorporated under the laws of the Canada (the “Company”), proposes to issue and sell
to the several underwriters named in Schedule A (the “Underwriters”) an aggregate of 20,509,746 of its
common shares (the “Firm Shares”), no par value per share (the “Common Shares”). In addition,
the Company has granted to the Underwriters an option to purchase up to an additional 3,076,461 Common Shares as provided in Section
2. The additional 3,076,461 Common Shares that may be sold by the Company pursuant to such option are collectively called the
“Optional Shares.” The Firm Shares and, if and to the extent such option is exercised, the Optional Shares,
are collectively called the “Offered Shares.” H.C. Wainwright & Co., LLC (“Wainwright”)
has agreed to act as representative of the several Underwriters (in such capacity, the “Representative”) in
connection with the offering and sale of the Offered Shares. To the extent there are no additional underwriters listed on Schedule
A, the term “Representative” as used herein shall mean you, as Underwriter, and the term “Underwriters”
shall mean either the singular or the plural, as the context requires. This Amended and Restated Underwriting Agreement amends,
restates and supersedes in its entirety the underwriting agreement, dated as of February 16, 2021, between the Company and the
Underwriters.
The
Company has prepared and filed with the U.S. Securities and Exchange Commission (the “Commission”) a shelf
registration statement on Form F-3, File No. 333-232935, including a base prospectus (the “Base Prospectus”)
to be used in connection with the public offering and sale of the Offered Shares. Such registration statement, as amended, including
the financial statements, exhibits and schedules thereto, in the form in which it became effective under the U.S. Securities Act
of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the “Securities Act”),
including all documents incorporated or deemed to be incorporated by reference therein and any information deemed to be a part
thereof at the time of effectiveness pursuant to Rule 430A or Rule 430B under the Securities Act, is called the “Registration
Statement.” Any registration statement filed by the Company pursuant to Rule 462(b) under the Securities Act in connection
with the offer and sale of the Offered Shares is called the “Rule 462(b) Registration Statement,” and from
and after the date and time of filing of any such Rule 462(b) Registration Statement the term “Registration Statement”
shall include the Rule 462(b) Registration Statement. The preliminary prospectus supplement, dated February 16, 2021, describing
the Offered Shares and the offering thereof (the “Preliminary Prospectus Supplement”), together with the Base
Prospectus, is called the “Preliminary Prospectus,” and the Preliminary Prospectus and any other prospectus
supplement to the Base Prospectus in preliminary form that describes the Offered Shares and the offering thereof and is used prior
to the filing of the Prospectus (as defined below), together with the Base Prospectus, is called a “preliminary prospectus.”
As used herein, the term “Prospectus” shall mean the final prospectus supplement to the Base Prospectus that
describes the Offered Shares and the offering thereof, together with the Base Prospectus, in the form first used by the Underwriters
to confirm sales of the Offered Shares or in the form first made available to the Underwriters by the Company to meet requests
of purchasers pursuant to Rule 173 under the Securities Act.
As
used herein, “Applicable Time” is 10:00 p.m. (New York time) on February 16, 2021. As used herein, “free
writing prospectus” has the meaning set forth in Rule 405 under the Securities Act, and “Time of Sale Prospectus”
means the Preliminary Prospectus, as amended or supplemented immediately prior to the Applicable Time, together with the free
writing prospectuses, if any, identified on Schedule B hereto and the pricing information set forth on Schedule C
hereto. As used herein, “Road Show” means a “road show” (as defined in Rule 433 under the Securities
Act) relating to the offering of the Offered Shares contemplated hereby that is a “written communication” (as defined
in Rule 405 under the Securities Act).
All
references in this Agreement to financial statements and schedules and other information which are “contained,” “included”
or “stated” in, or “part of” the Registration Statement, the Rule 462(b) Registration Statement, the Preliminary
Prospectus, any preliminary prospectus, the Base Prospectus, the Time of Sale Prospectus or the Prospectus, and all other references
of like import, shall be deemed to mean and include all such financial statements and schedules and other information which is
or is deemed to be incorporated by reference in the Registration Statement, the Rule 462(b) Registration Statement, the Preliminary
Prospectus, any preliminary prospectus, the Base Prospectus, the Time of Sale Prospectus or the Prospectus, as the case may be.
All
references in this Agreement to amendments or supplements to the Registration Statement, the Preliminary Prospectus, any preliminary
prospectus, the Base Prospectus, the Time of Sale Prospectus or the Prospectus shall be deemed to mean and include the filing
of any document under the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder
(collectively, the “Exchange Act”) that is or is deemed to be incorporated by reference in the Registration
Statement, the Preliminary Prospectus, any preliminary prospectus, the Base Prospectus, or the Prospectus, as the case may be.
All
references in this Agreement to (i) the Registration Statement, the Preliminary Prospectus, any preliminary prospectus, the Base
Prospectus or the Prospectus, any amendments or supplements to any of the foregoing, or any free writing prospectus, shall include
any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”)
and (ii) the Prospectus shall be deemed to include any “electronic Prospectus” provided for use in connection with
the offering of the Offered Shares as contemplated by Section 3(n) of this Agreement.
The
Company shall issue to the Representative or its designees on each Closing Date warrants (the “Underwriter Warrants”)
to purchase that number of shares of Common Stock equal to 7% of the aggregate number of shares of Common Stock issued on such
Closing Date. The Underwriter Warrants shall be in a customary form reasonably acceptable to the Underwriter and the Company,
shall be exercisable, in whole or in part, immediately and expire on the five-year anniversary of the date of the Prospectus at
an initial exercise price per share of Common Stock of $1.8125, which is equal to 125% of the public offering price of the Shares
The
Company hereby confirms its agreements with the Underwriters as follows:
1.
Representations and Warranties of the Company. The Company represents and warrants to each Underwriter as of the date of
this Agreement, the Applicable Time, the First Closing Date (as hereinafter defined) and each Option Closing Date (as hereinafter
defined), if any, unless such representation, warranty or agreement speaks as of a different time, as follows:
(a)
Compliance with Registration Requirements. The Registration Statement has become effective under the Securities Act.
The Company has complied, to the Commission’s satisfaction, with all requests of the Commission for additional or supplemental
information, if any. No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings
for such purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened by the
Commission. At the time the Company’s Annual Report on Form 20-F for the year ended December 31, 2019 (the “Annual
Report”) was filed with the Commission, or, if later, at the time the Registration Statement was originally filed with
the Commission, the Company met the then-applicable registrant requirements for use of Form F-3 under the Securities Act. The
documents incorporated or deemed to be incorporated by reference in the Registration Statement, the Time of Sale Prospectus and
the Prospectus, at the time they were or hereafter are filed with the Commission, or became effective under the Exchange Act,
as the case may be, complied and will comply in all material respects with the requirements of the Exchange Act.
(b)
Disclosure. Each preliminary prospectus and the Prospectus when filed complied in all material respects with the Securities
Act and, if filed by electronic transmission pursuant to EDGAR, was identical (except as may be permitted by Regulation S-T under
the Securities Act) to the copy thereof delivered to the Underwriters for use in connection with the offer and sale of the Offered
Shares. Each of the Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective
and at all subsequent times, complied and will comply in all material respects with the Securities Act and did not and will not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading. As of the Applicable Time, the Time of Sale Prospectus did not, and at the time of
each sale of the Offered Shares and at the Closing Date (as defined in Section 2), the Time of Sale Prospectus, as then amended
or supplemented by the Company, if applicable, will not, contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The
Prospectus, as of its date and (as then amended or supplemented) at all subsequent times, did not and will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The representations and warranties set forth in the three immediately
preceding sentences do not apply to statements in or omissions from the Registration Statement or any post-effective amendment
thereto, or the Prospectus or the Time of Sale Prospectus, or any amendments or supplements thereto, made in reliance upon and
in conformity with written information relating to any Underwriter furnished to the Company in writing by the Representative expressly
for use therein, it being understood and agreed that the only such information consists of the information described in Section
9(a) below. There are no contracts or other documents required to be described in the Time of Sale Prospectus or the Prospectus
or to be filed as an exhibit to the Registration Statement which have not been described or filed as required.
(c)
Free Writing Prospectuses; Road Show. As of the determination date referenced in Rule 164(h) under the Securities Act,
the Company was not, is not or will not be (as applicable) an “ineligible issuer” in connection with the offering
of the Offered Shares pursuant to Rules 164, 405 and 433 under the Securities Act. Each free writing prospectus that the Company
is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance
with the requirements of the Securities Act. Each free writing prospectus that the Company has filed, or is required to file,
pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company
complies or will comply in all material respects with the requirements of Rule 433 under the Securities Act, including timely
filing with the Commission or retention where required and legending, and each such free writing prospectus, as of its issue date
and at all subsequent times through the completion of the public offer and sale of the Offered Shares did not, does not and will
not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement,
the Prospectus or any preliminary prospectus and not superseded or modified. Except for the free writing prospectuses, if any,
identified in Schedule B, and electronic road shows, if any, furnished to you before first use, the Company has not prepared,
used or referred to, and will not, without your prior written consent, prepare, use or refer to, any free writing prospectus.
Each Road Show, when considered together with the Time of Sale Prospectus, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading.
(d)
Form F-3. The Company and the transactions contemplated by this Agreement meet the requirements for, and comply with
the conditions for the use of, Form F-3 under the Securities Act, including the transaction requirements set forth in General
Instruction I.B.1 of such form. The Company is subject to and in compliance in all material respects with the reporting requirements
of Section 13 or Section 15(d) of the Exchange Act. The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x)
under the Securities Act and complies with said Rule, and the Prospectus Supplement will meet the requirements set forth in Rule
424(b).
(e)
Distribution of Offering Material By the Company. Prior to the later of (i) the expiration or termination of the option
granted to the several Underwriters in Section 2, and (ii) the completion of the Underwriters’ distribution of the
Offered Shares, the Company has not distributed and will not distribute any offering material in connection with the offering
and sale of the Offered Shares other than the Registration Statement, the Time of Sale Prospectus, the Prospectus, any free writing
prospectus reviewed and consented to by the Representative, and the free writing prospectuses, if any, identified on Schedule
B hereto. The Company has not distributed and will not distribute any offering material in connection with the offering other
than the Registration Statement and the prospectus supplement to the Base Prospectus that described the offering hereof.
(f)
Financial Information. The consolidated financial statements of the Company included or incorporated by reference in
the Registration Statement, the Time of Sale Prospectus and the Prospectus, if any, together with the related notes and schedules,
present fairly, in all material respects, the consolidated financial position of the Company and the Subsidiaries (as defined
below) as of the dates indicated and the consolidated results of operations, cash flows and changes in shareholders’ equity
of the Company for the periods specified and have been prepared in compliance in all material respects with the requirements of
the Securities Act and Exchange Act, and in conformity with International Financial Reporting Standards, as issued by the International
Accounting Standards Board, applied on a consistent basis during the periods involved; there are no financial statements (historical
or pro forma) that are required to be included or incorporated by reference in the Registration Statement, the Time of Sale Prospectus
and the Prospectus that are not included or incorporated by reference as required; the Company and the Subsidiaries (as defined
below) do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations),
not described in the Registration Statement (excluding the exhibits thereto), the Time of Sale Prospectus and the Prospectus;
and all disclosures contained or incorporated by reference in the Registration Statement, the Time of Sale Prospectus and the
Prospectus and any free writing prospectuses, if any, regarding “non-GAAP financial measures” (as such term is defined
by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under
the Securities Act, to the extent applicable. The financial data set forth in each of the Registration Statement, the Time of
Sale Prospectus and the Prospectus fairly present, in all material respects, the information set forth therein on a basis consistent
with that of the audited financial statements contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus.
The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement
and the Prospectus fairly presents the information called for in all material respects and has been prepared in accordance with
the Commission’s rules and guidelines applicable thereto.
(g)
Conformity with EDGAR Filing. The Preliminary Prospectus and Prospectus delivered to the Underwriters for use in connection
with the sale of the Offered Shares pursuant to this Agreement will be identical to the versions of the Preliminary Prospectus
and Prospectus created to be transmitted to the Commission for filing via EDGAR, except to the extent permitted by Regulation
S-T.
(h)
Organization. The Company and each of its Subsidiaries are duly organized, validly existing as a corporation or other
entity and in good standing under the laws of their respective jurisdictions of organization. The Company and each of its Subsidiaries
are duly licensed or qualified as a foreign corporation or other entity for transaction of business and in good standing under
the laws of each other jurisdiction in which their respective ownership or lease of property or the conduct of their respective
businesses requires such license or qualification, and have all corporate or other organizational power and authority necessary
to own or hold their respective properties and to conduct their respective businesses as described in the Registration Statement,
the Time of Sale Prospectus and the Prospectus, and as currently carried on, except where the failure to be so qualified or in
good standing or have such power or authority would not, individually or in the aggregate, have a material adverse effect or reasonably
be expected to have a material adverse effect on the assets, business, operations, earnings, properties, condition (financial
or otherwise), prospects, stockholders’ equity or results of operations of the Company and the Subsidiaries taken as a whole,
or prevent or materially interfere with consummation of the transactions contemplated hereby (a “Material Adverse Effect”).
(i)
Subsidiaries. The subsidiaries set forth on Schedule D (collectively, the “Subsidiaries”),
are the Company’s only significant subsidiaries (as such term is defined in Rule 1-02 of Regulation S-X promulgated by the
Commission). The Company owns, directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any lien,
charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of the Subsidiaries
are validly issued and are fully paid, nonassessable and free of preemptive and similar rights. Except as set forth in the Registration
Statement, the Time of Sale Prospectus and the Prospectus, no Subsidiary is currently prohibited, directly or indirectly, from
paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying
to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property
or assets to the Company or any other Subsidiary of the Company.
(j)
No Violation or Default. Neither the Company nor any of its Subsidiaries is (i) in violation of its certificate of
incorporation, charter or by-laws or any other organizational documents; (ii) in default, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property
or assets of the Company or any of its Subsidiaries are subject; or (iii) in violation of any law or statute or any judgment,
order, rule or regulation of any Governmental Authority (as defined below), except, in the case of each of clauses (ii) and (iii)
above, for any such violation or default that would not, individually or in the aggregate, have a Material Adverse Effect. To
the Company’s knowledge, no other party under any material contract or other agreement to which it or any of its Subsidiaries
is a party is in default in any respect thereunder where such default would have a Material Adverse Effect.
(k)
No Material Adverse Change. Subsequent to the respective dates as of which information is given in the Registration
Statement, the Time of Sale Prospectus, the Prospectus and the free writing prospectuses, if any (including any document deemed
incorporated by reference therein), there has not been (i) any Material Adverse Effect or the occurrence of any development that
would reasonably be expected to have a Material Adverse Effect, (ii) any transaction which is material to the Company and the
Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations),
incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any material
change in the capital stock or outstanding long-term indebtedness of the Company or any of its Subsidiaries or (v) any dividend
or distribution of any kind declared, paid or made on the capital stock of the Company or any Subsidiary, other than in each case
above in the ordinary course of business or as otherwise disclosed in the Registration Statement or Prospectus (including any
document deemed incorporated by reference therein).
(l)
Capitalization. The issued and outstanding shares of capital stock of the Company have been validly issued, are fully
paid and nonassessable and are not subject to any preemptive rights, rights of first refusal or similar rights. The Company has
an authorized, issued and outstanding capitalization as set forth in the Registration Statement and the Prospectus as of the dates
referred to therein (other than the grant of additional options under the Company’s existing option plans, or changes in
the number of outstanding Common Shares due to the issuance of shares upon the exercise or conversion of securities exercisable
for, or convertible into, Common Shares outstanding on the date hereof or any anti-dilution provisions of such outstanding securities)
and such authorized capital stock conforms in all material respects to the description thereof set forth in the Registration Statement,
the Time of Sale Prospectus and the Prospectus. The description of the securities of the Company in the Registration Statement,
the Time of Sale Prospectus and the Prospectus is complete and accurate in all material respects. Except as disclosed in or contemplated
by the Registration Statement, the Time of Sale Prospectus or the Prospectus, as of the date referred to therein, the Company
does not have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations
convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other
securities.
(m)
Authorization; Enforceability. The Company has full legal right, power and authority to enter into this Agreement and
perform the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and
is a legal, valid and binding agreement of the Company enforceable against the Company in accordance with its terms, except to
the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general equitable principles.
(n)
Authorization of the Offered Shares. The Offered Shares have been duly authorized for issuance and sale pursuant to
this Agreement and, when issued and delivered by the Company against payment therefor pursuant to this Agreement, will be duly
and validly issued, fully paid and nonassessable, free and clear of any pledge, mortgage, hypothecation, lien, encumbrance, security
interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other
similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Offered Shares, when issued, will conform
in all material respects to the description thereof set forth in or incorporated into the Registration Statement, the Time of
Sale Prospectus and the Prospectus.
(o)
No Consents Required. No consent, approval, authorization, order, registration or qualification of or with any Governmental
Authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale by the
Company of the Offered Shares, except for such consents, approvals, authorizations, orders and registrations or qualifications
as may be required under applicable state securities laws or by the by-laws and rules of the Financial Industry Regulatory Authority
(“FINRA”) or the NASDAQ Stock Market (the “NASDAQ”) in connection with the sale of the Offered
Shares.
(p)
No Preferential Rights. Except as set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus,
(i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a “Person”),
has the right, contractual or otherwise, to cause the Company to issue or sell to such Person any Common Shares or shares of any
other capital stock or other securities of the Company, (ii) no Person has any preemptive rights, resale rights, rights of first
refusal, rights of co-sale, or any other rights (whether pursuant to a “poison pill” provision or otherwise) to purchase
any Common Shares or shares of any other capital stock or other securities of the Company, (iii) no Person has the right to act
as an underwriter or as a financial advisor to the Company in connection with the offer and sale of the Common Shares, and (iv)
no Person has the right, contractual or otherwise, to require the Company to register under the Securities Act, any Common Shares
or shares of any other capital stock or other securities of the Company, or to include any such shares or other securities in
the Registration Statement or the offering contemplated thereby, whether as a result of the filing or effectiveness of the Registration
Statement or the sale of the Offered Shares as contemplated thereby or otherwise.
(q)
Independent Public Accounting Firms. PricewaterhouseCoopers LLP (the “Accountant”), whose report
on the consolidated financial statements of the Company is filed with the Commission as part of the Company’s most recent
Annual Report on Form 20-F filed with the Commission and incorporated by reference into the Registration Statement, the Time of
Sale Prospectus and the Prospectus, is and, during the periods covered by its report, was an independent registered public accounting
firm within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States). To the Company’s
knowledge, the Accountant is not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the
“Sarbanes-Oxley Act”) with respect to the Company.
(r)
Enforceability of Agreements. All agreements between the Company and third parties expressly referenced in the Registration
Statement, the Time of Sale Prospectus and the Prospectus are legal, valid and binding obligations of the Company enforceable
in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles and
(ii) the indemnification provisions of certain agreements may be limited by federal or state securities laws or public policy
considerations in respect thereof.
(s)
No Litigation. Except as set forth in the Registration Statement, the Time of Sale Prospectus or the Prospectus, there
are no actions, suits or proceedings by or before any Governmental Authority pending, nor, to the Company’s knowledge, any
audits or investigations by or before any Governmental Authority, to which the Company or a Subsidiary is a party or to which
any property of the Company or any of its Subsidiaries is the subject that, individually or in the aggregate, if determined adversely
to the Company or its Subsidiaries, would reasonably be expected to have a Material Adverse Effect and, to the Company’s
knowledge, no such actions, suits, proceedings, audits or investigations are threatened or contemplated by any Governmental Authority
or threatened by others; and (i) there are no current or pending audits, investigations, actions, suits or proceedings by or before
any Governmental Authority that are required under the Securities Act to be described in the Registration Statement, the Time
of Sale Prospectus or Prospectus that are not so described; and (ii) there are no contracts or other documents that are required
under the Securities Act to be filed as exhibits to the Registration Statement that are not so filed.
(t)
Consents and Permits. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
or any non-U.S. counterpart that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company
or any of its Subsidiaries (each such product, a “Product”), such Product is being manufactured, packaged,
labeled, tested, distributed, sold and/or marketed by the Company or its Subsidiaries in material compliance with all applicable
Health Care Laws relating to registration, investigational use, premarket clearance, licensure, or application approval, good
manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record
keeping and filing of reports. There is no pending, completed or, to the Company’s knowledge, threatened, action (including
any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the
Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter
or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure, registration,
or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling
and promotion of any Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or
orders the withdrawal of advertising or sales promotional materials relating to, any Product, (iii) imposes a clinical hold on
any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or
any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any
of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries,
and which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. The properties,
business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable
Health Care Laws. The Company has not been informed by the FDA or any non-U.S. counterpart that the FDA or any non-U.S. counterpart
will prohibit the marketing, sale, license or use in the United States or in any other territory any product proposed to be developed,
produced or marketed by the Company or any Subsidiary nor has the FDA or any non-U.S. counterpart expressed any concern as to
approving or clearing for marketing any product being developed or proposed to be developed by the Company or any Subsidiary.
To the Company’s knowledge, there are no legal or governmental proceedings relating to any Health Care Law pending or threatened
to which the Company is a party, nor is it aware of any material violations of such acts or regulations by the Company, which
would have a Material Adverse Effect. For purposes of this Agreement, “Health Care Laws” means: (i) the Federal
Food, Drug, and Cosmetic Act and the regulations promulgated thereunder; (ii) all applicable federal, state, local and all applicable
foreign health care related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42 U.S.C. Section
1320a-7b(b)), the U.S. Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the U.S. Civil False Claims Act (31 U.S.C.
Section 3729 et seq.), the criminal False Claims Law (42 U.S.C. § 1320a-7b(a)), all criminal laws relating to health care
fraud and abuse, including but not limited to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal provisions under
the U.S. Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. Section 1320d et
seq.), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalties law (42 U.S.C. § 1320a-7a), the statutes,
regulations and directives of applicable government funded or sponsored healthcare programs, and the regulations promulgated pursuant
to such statutes; (iii) the Standards for Privacy of Individually Identifiable Health Information, the Security Standards, and
the Standards for Electronic Transactions and Code Sets promulgated under HIPAA, the Health Information Technology for Economic
and Clinical Health Act (42 U.S.C. Section 17921 et seq.), and the regulations promulgated thereunder and any state or non-U.S.
counterpart thereof or other law or regulation the purpose of which is to protect the privacy of individuals or prescribers; (iv)
Medicare (Title XVIII of the Social Security Act); (v) Medicaid (Title XIX of the Social Security Act); and (vi) any and all other
applicable health care laws and regulations.
(u)
Regulatory Filings. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus,
neither the Company nor any of its Subsidiaries has failed to file with the applicable Governmental Authority (including the FDA
or any foreign, federal, state or local Governmental Authority performing functions similar to those performed by the FDA) any
required filing, declaration, listing, registration, report or submission, except for such failures that, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect; except as disclosed in the Registration Statement,
the Time of Sale Prospectus and the Prospectus, all such filings, declarations, listings, registrations, reports or submissions
were in material compliance with applicable laws when filed and no deficiencies have been asserted by any applicable regulatory
authority with respect to any such filings, declarations, listings, registrations, reports or submissions, except for any deficiencies
that, individually or in the aggregate, would not have a Material Adverse Effect. The Company has operated and currently is, in
all material respects, in compliance with all applicable Health Care Laws. The Company has no knowledge of any studies, tests
or trials not described in the Registration Statement, the Time of Sale Prospectus and the Prospectus the results of which reasonably
call into question in any material respect the results of the studies, tests and trials described in the Registration Statement,
the Time of Sale Prospectus and the Prospectus.
(v)
Intellectual Property. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus,
the Company and its Subsidiaries own, possess, license or have other rights to use, or could obtain on commercially reasonable
terms, all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade
names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property
(collectively, the “Intellectual Property”), necessary for the conduct of their respective businesses as now
conducted except to the extent that the failure to own, possess, license or otherwise hold adequate rights to use such Intellectual
Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in the Registration
Statement, the Time of Sale Prospectus and the Prospectus (i) there are no rights of third parties to any such Intellectual Property
owned by the Company and its Subsidiaries, except for licenses granted in the ordinary course to third parties, or that could
not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (ii) to the Company’s
knowledge, there is no infringement by third parties of any such Intellectual Property; (iii) there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the Company’s and its Subsidiaries’
rights in or to any such Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for
any such action, suit, proceeding or claim; (iv) there is no pending or, to the Company’s knowledge, threatened action,
suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property; (v) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company and its Subsidiaries
infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary rights of others; (vi) to the
Company’s knowledge, there is no third-party U.S. patent or published U.S. patent application which contains claims for
which an Interference Proceeding (as defined in 35 U.S.C. § 135), or the equivalent in any other jurisdiction, has been commenced
against any patent or patent application described in the Registration Statement, the Time of Sale Prospectus and the Prospectus
as being owned by or licensed to the Company; and (vii) the Company and its Subsidiaries have complied with the terms of each
agreement pursuant to which Intellectual Property has been licensed to the Company or such Subsidiary, and all such agreements
are in full force and effect, except, in the case of any of clauses (i)-(vii) above, for any such infringement by third parties
or any such pending or threatened suit, action, proceeding or claim as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.
(w)
Clinical Studies. The preclinical studies and tests and clinical trials described in the Registration Statement, the
Time of Sale Prospectus and the Prospectus were, and, if still pending, are being conducted in all material respects in accordance
with the experimental protocols, procedures and controls pursuant to, where applicable, accepted professional and scientific standards
for products or product candidates comparable to those being developed by the Company; the descriptions of such studies, tests
and trials, and the results thereof, contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus are
accurate and complete in all material respects; the Company is not aware of any tests, studies or trials not described in the
Registration Statement, the Time of Sale Prospectus and the Prospectus, the results of which reasonably call into question the
results of the tests, studies and trials described in the Registration Statement, the Time of Sale Prospectus and the Prospectus;
and the Company has not received any written notice or correspondence from the FDA or any foreign, state or local Governmental
Authority exercising comparable authority or any institutional review board or comparable authority requiring the termination,
suspension, clinical hold or material modification of any tests, studies or trials.
(x)
No Material Defaults. Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness
for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably
be expected to have a Material Adverse Effect. The Company has not (i) failed to pay any dividend or sinking fund installment
on preferred shares or (ii) defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term
leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect.
(y)
Certain Market Activities. Neither the Company nor any of its Subsidiaries has taken, directly or indirectly, any action
designed to or that might cause or result in stabilization or manipulation of the price of the Common Shares or of any other securities,
including any “reference security” (as defined in Rule 100 of Regulation M under the Exchange Act (“Regulation
M”)) with respect to the Common Shares, whether to facilitate the sale or resale of the Offered Shares or otherwise,
and has taken no action which would directly or indirectly violate Regulation M or applicable foreign securities laws and rules.
(z)
Broker/Dealer Relationships. Neither the Company nor any of the Subsidiaries (i) is required to register as a “broker”
or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more
intermediaries, controls or is a “person associated with a member” or “associated person of a member”
(within the meaning set forth in the FINRA Manual).
(aa)
No Reliance. The Company has not relied upon the Underwriters or legal counsel for the Underwriters for any legal,
tax or accounting advice in connection with the offering and sale of the Offered Shares.
(bb)
Taxes. The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns which
have been required to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become
due and are not being contested in good faith, except where the failure to so file or pay would not reasonably be expected to
have a Material Adverse Effect. Except as otherwise disclosed in or contemplated by the Registration Statement, the Time of Sale
Prospectus or the Prospectus, no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which
has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company has
no knowledge of any federal, state, or other governmental tax deficiency, penalty or assessment which has been or might be asserted
or threatened against it which would reasonably be expected to have a Material Adverse Effect.
(cc)
Title to Real and Personal Property. Except as set forth in the Registration Statement, the Time of Sale Prospectus
or the Prospectus, the Company and its Subsidiaries have good and marketable title in fee simple to all items of real property
owned by them, good and valid title to all personal property described in the Registration Statement, the Time of Sale Prospectus
or the Prospectus as being owned by them that are material to the businesses of the Company or such Subsidiary, in each case free
and clear of all mortgages, liens, encumbrances and claims, except those matters that (i) do not materially interfere with the
use made and proposed to be made of such property by the Company and any of its Subsidiaries or (ii) would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. Any real or personal property described in the Registration
Statement, the Time of Sale Prospectus or the Prospectus as being leased by the Company and any of its Subsidiaries is held by
them under valid, existing and enforceable leases, free and clear of all mortgages, liens, encumbrances and claims, except those
matters that (A) do not materially interfere with the use made or proposed to be made of such property by the Company or any of
its Subsidiaries or (B) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
Each of the properties of the Company and its Subsidiaries complies with all applicable codes, laws and regulations (including,
without limitation, building and zoning codes, laws and regulations and laws relating to access to such properties), except for
such failures to comply that would not, individually or in the aggregate, reasonably be expected to interfere in any material
respect with the use made and proposed to be made of such property by the Company and its Subsidiaries or otherwise have a Material
Adverse Effect. None of the Company or its Subsidiaries has received from any Governmental Authorities any notice of any condemnation
of, or zoning change affecting, the properties of the Company and its Subsidiaries, and the Company knows of no such condemnation
or zoning change which is threatened, except for such that would not reasonably be expected to interfere in any material respect
with the use made and proposed to be made of such property by the Company and its Subsidiaries or otherwise have a Material Adverse
Effect, individually or in the aggregate.
(dd)
Environmental Laws. Except as set forth in the Registration Statement, the Time of Sale Prospectus or the Prospectus,
the Company and its Subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign laws, rules,
regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and
are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses as described in the Registration Statement, the Time of Sale Prospectus or the Prospectus; and (iii)
have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release
of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii)
above, for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(ee)
Disclosure Controls. The Company and each of its Subsidiaries maintain systems of internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company’s internal control over financial
reporting is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting
(other than as set forth in the Registration Statement, Time of Sale Prospectus or Prospectus). Since the date of the latest audited
financial statements of the Company included in the Prospectus, there has been no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting (other than as set forth in the Registration Statement, Time of Sale Prospectus or Prospectus).
The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company
and designed such disclosure controls and procedures to ensure that material information relating to the Company and each of its
Subsidiaries is made known to the certifying officers by others within those entities, particularly during the period in which
the Company’s Annual Report on Form 20-F is being prepared. The Company’s certifying officers have evaluated the effectiveness
of the Company’s disclosure controls and procedures as of a date within 90 days prior to the filing date of the Form 20-F
for the fiscal year ended December 31, 2019 (such date, the “Evaluation Date”). The Company presented in its
Form 20-F for the fiscal year ended December 31, 2019, the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the Evaluation Date and the disclosure controls and procedures
are effective. Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as
such term is defined in Rule 13a-15(f) under the Exchange Act) or, to the Company’s knowledge, in other factors that could
significantly affect the Company’s internal controls.
(ff)
Sarbanes-Oxley. There is and has been no failure on the part of the Company or any of the Company’s directors
or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley
Act and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal financial
officer of the Company (or each former principal executive officer of the Company and each former principal financial officer
of the Company as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect
to all reports, schedules, forms, statements and other documents required to be filed by it or furnished by it to the Commission.
For purposes of the preceding sentence, “principal executive officer” and “principal financial officer”
shall have the meanings given to such terms in the Sarbanes-Oxley Act.
(gg)
Brokers. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage
commissions or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect
to or pursuant to this Agreement.
(hh)
Labor Disputes and Matters. Neither the Company or any of its Subsidiaries employs any person represented by a union
or collective bargaining unit. No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists
or, to the knowledge of the Company, is threatened which would reasonably be expected to have a Material Adverse Effect.
(ii)
Investment Company Act. Neither the Company nor any of the Subsidiaries is, or will be, either after receipt of payment
for the Offered Shares or after the application of the proceeds therefrom as described under “Use of Proceeds” in
the Registration Statement, the Time of Sale Prospectus or the Prospectus, required to register as an “investment company”
or an entity “controlled” by an “investment company,” as such terms are defined in the Investment Company
Act of 1940, as amended (the “Investment Company Act”).
(jj)
Operations. The operations of the Company and its Subsidiaries are and have been conducted at all times in material
compliance with applicable financial record keeping and reporting requirements of applicable law, including the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions to which the Company or its
Subsidiaries are subject, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Authority (collectively, the “Money Laundering Laws”); and no
action, suit or proceeding by or before any Governmental Authority involving the Company or any of its Subsidiaries with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(kk)
Off-Balance Sheet Arrangements. There are no transactions, arrangements or other relationships between and/or among
the Company, and/or any of its affiliates and any unconsolidated entity, including, but not limited to, any structural finance,
special purpose or limited purpose entity (each, an “Off-Balance Sheet Transaction”) that would affect materially
the Company’s liquidity or the availability of or requirements for its capital resources, including those Off-Balance Sheet
Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions
and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Registration Statement, the
Time of Sale Prospectus or the Prospectus which have not been described as required.
(ll)
ERISA. To the knowledge of the Company, each material employee benefit plan, within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered
or contributed to by the Company or any of its affiliates for employees or former employees of the Company and any of its Subsidiaries
has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material
liability to the Company with respect to any such plan excluding transactions effected pursuant to a statutory or administrative
exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no
“accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and
the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds
the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions. Each of the material
employee benefit plans of the Company complies in all material respects with applicable law.
(mm)
Foreign Pension Plans. Except as would not reasonably be expected to have a Material Adverse Effect or as described
in the Registration Statement, the Time of Sale Prospectus and the Prospectus, with respect to any benefit plan governed under
applicable law of any jurisdiction other than the United States (each, a “Foreign Pension Plan”), none of the
following events have occurred or could reasonably be expected to occur: (i) the existence of unfunded liabilities in excess of
the amount permitted under any applicable law, or in excess of the amount that would be permitted absent a waiver from a Governmental
Authority; (ii) the failure to make the required contributions or payments, under any applicable law, on or before the due date
for such contributions or payments; (iii) the receipt of a notice by a Governmental Authority relating to the intention to terminate
any such Foreign Pension Plan or to appoint a trustee or similar official to administer any such Foreign Pension Plan, or alleging
the insolvency of any such Foreign Pension Plan; (iv) the incurrence of any liability in excess of $1,000,000 by the Company or
any of its Subsidiaries under applicable law on account of the complete or partial termination of such Foreign Pension Plan or
the complete or partial withdrawal of any participating employer therein or (v) the occurrence of any transaction that is prohibited
under any applicable law and that results in the incurrence of any liability by the Company or its Subsidiaries, or the imposition
on the Company or any of its Subsidiaries of any fine, excise tax or penalty resulting from any noncompliance with any applicable
law, in each case in excess of $1,000,000.
(nn)
Forward-Looking Statements. Each financial or operational projection or other “forward-looking statement”
(as defined by Section 27A of the Securities Act or Section 21E of the Exchange Act, or as defined by any other applicable securities
laws) contained in the Registration Statement, the Time of Sale Prospectus or the Prospectus (i) was so included by the Company
in good faith and with reasonable basis after due consideration by the Company of the underlying assumptions, estimates and other
applicable facts and circumstances and (ii) is accompanied by meaningful cautionary statements identifying those factors that
could cause actual results to differ materially from those in such forward-looking statement. No such statement was made with
the knowledge of an executive officer or director of the Company that it was false or misleading.
(oo)
Margin Rules. Neither the issuance, sale and delivery of the Offered Shares nor the application of the proceeds thereof
by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System or any other regulation of such Board of Governors.
(pp)
Insurance. The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and covering
such risks as the Company and each of its Subsidiaries reasonably believe are adequate for the conduct of their business and as
is customary for companies engaged in similar businesses in similar industries.
(qq)
No Improper Practices. (i) Neither the Company nor the Subsidiaries, nor any director, officer, or employee of the
Company or any Subsidiary nor, to the Company’s knowledge, any agent, affiliate or other person acting on behalf of the
Company or any Subsidiary has, in the past five years, made any unlawful contributions to any candidate for any political office
(or failed fully to disclose any contribution in violation of applicable law) or made any contribution or other payment to any
official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public or
quasi-public duty in violation of any applicable law or of the character required to be disclosed in the Prospectus; (ii) no relationship,
direct or indirect, exists between or among the Company or any Subsidiary or any affiliate of any of them, on the one hand, and
the directors, officers and stockholders of the Company or any Subsidiary, on the other hand, that is required by the Securities
Act to be described in the Registration Statement, the Time of Sale Prospectus and the Prospectus that is not so described; (iii)
no relationship, direct or indirect, exists between or among the Company or any Subsidiary or any affiliate of them, on the one
hand, and the directors, officers, or stockholders of the Company or any Subsidiary, on the other hand, that is required by the
rules of FINRA to be described in the Registration Statement, the Time of Sale Prospectus and the Prospectus that is not so described;
(iv) there are no material outstanding loans or advances or material guarantees of indebtedness by the Company or any Subsidiary
to or for the benefit of any of their respective officers or directors or any of the members of the families of any of them; and
(v) the Company has not offered, or caused any placement agent to offer, Common Shares to any person with the intent to influence
unlawfully (A) a customer or supplier of the Company or any Subsidiary to alter the customer’s or supplier’s level
or type of business with the Company or any Subsidiary or (B) a trade journalist or publication to write or publish favorable
information about the Company or any Subsidiary or any of their respective products or services, and, (vi) neither the Company
nor any Subsidiary nor any director, officer or employee of the Company or any Subsidiary nor, to the Company’s knowledge,
any agent, affiliate or other person acting on behalf of the Company or any Subsidiary has (A) violated or is in violation of
any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other applicable anti-bribery or
anti-corruption law (collectively, “Anti-Corruption Laws”), (B) promised, offered, provided, attempted to provide
or authorized the provision of anything of value, directly or indirectly, to any person for the purpose of obtaining or retaining
business, influencing any act or decision of the recipient or securing any improper advantage, or (C) made any payment of funds
of the Company or any Subsidiary or received or retained any funds in violation of any Anti-Corruption Laws.
(rr)
No Conflicts. Neither the execution of this Agreement, nor the issuance, offering or sale of the Offered Shares, nor
the consummation of any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions
hereof will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute
a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property
or assets of the Company pursuant to the terms of any contract or other agreement to which the Company may be bound or to which
any of the property or assets of the Company is subject, except (i) such conflicts, breaches or defaults as may have been waived
and (ii) such conflicts, breaches and defaults that would not reasonably be expected to have a Material Adverse Effect; nor will
such action result (x) in any violation of the provisions of the organizational or governing documents of the Company, or (y)
in any violation of the provisions of any statute or any order, rule or regulation applicable to the Company or of any Governmental
Authority having jurisdiction over the Company other than, with respect to clause (y) only, any violation that would not have
a Material Adverse Effect; provided, however, that such violation shall not have any adverse effect with respect to the Underwriters.
(ss)
Sanctions. (i) The Company represents that, neither the Company nor any of its Subsidiaries (collectively, the “Entity”)
or, any director, officer, employee, agent, affiliate or representative of the Entity, is a government, individual, or entity
(in this paragraph (tt), “Person”) that is, or is owned or controlled by a Person that is:
(A)
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control
(“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant
sanctions authorities, including designation on OFAC’s Specially Designated Nationals and Blocked Persons List, OFAC’s
Foreign Sanctions Evaders List or other similar applicable legislation or rules (as amended, collectively, “Sanctions”),
nor
(B)
located, organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings with
that country or territory (including Cuba, Iran, North Korea, Sudan, Syria and the Crimea Region of the Ukraine) (the “Sanctioned
Countries”).
(ii)
The Entity represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A)
to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such
funding or facilitation, is the subject of Sanctions or is a Sanctioned Country; or
(B)
in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering,
whether as underwriter, advisor, investor or otherwise).
(iii)
The Entity represents and covenants that, except as detailed in the Registration Statement and the Prospectus, for the past 5
years, it has not engaged in, is not now engaging in, and will not engage in, any dealings or transactions with any Person, or
in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions or is or was a
Sanctioned Country.
(tt)
Compliance with Laws. Each of the Company and its Subsidiaries: (i) is and at all times has been in compliance with
all statutes, rules, or regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use,
distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured
or distributed by the Company or its Subsidiaries (“Applicable Laws”), except as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect; (ii) has not received any FDA Form 483, notice of
adverse finding, warning letter, untitled letter or other correspondence or notice from the FDA or any other Governmental Authority
alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations,
permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”); (iii)
possesses all material Authorizations and such Authorizations are valid and in full force and effect and are not in material violation
of any term of any such Authorizations; (iv) has not received notice of any claim, action, suit, proceeding, hearing, enforcement,
investigation, arbitration or other action from any Governmental Authority or third party alleging that any product operation
or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that any such Governmental Authority
or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; (v) has not
received notice that any Governmental Authority has taken, is taking or intends to take action to limit, suspend, modify or revoke
any Authorizations and has no knowledge that any such Governmental Authority is considering such action; (vi) has filed, obtained,
maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements
or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications,
records, claims, submissions and supplements or amendments were complete and correct on the date filed (or were corrected or supplemented
by a subsequent submission); and (vii) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused
to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post-sale warning, “dear
healthcare provider” letter, or other notice or action relating to the alleged lack of safety or efficacy of any product
or any alleged product defect or violation and, to the Company’s knowledge, no third party has initiated, conducted or intends
to initiate any such notice or action.
(uu)
Statistical and Market-Related Data. All statistical, demographic and market-related data included in the Registration
Statement, the Time of Sale Prospectus or the Prospectus are based on or derived from sources that the Company believes to be
reliable and accurate or represent the Company’s good faith estimates that are made on the basis of data derived from such
sources.
(vv)
Stock Exchange Listing. The Common Shares are registered pursuant to Section 12(b) of the Exchange Act and are listed
on the Nasdaq Capital Market of the NASDAQ, and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Shares under the Exchange Act or delisting the Common Shares from the Nasdaq Global
Select Market of the NASDAQ. Except as set forth in the Registration Statement, the Time of Sale Prospectus or the Prospectus,
the Company has not received any notification that the Commission or the NASDAQ is contemplating terminating such registration
or listing. To the Company’s knowledge, it is in compliance with all applicable listing requirements of the NASDAQ, except
as disclosed in the Registration Statement, the Time of Sale Prospectus or the Prospectus.
(ww)
Related-Party Transactions. There are no business relationships or related-party transactions involving the Company
or any of its Subsidiaries or any other person required to be described in the Registration Statement, the Time of Sale Prospectus
or the Prospectus that have not been described as required.
(xx)
No Contract Terminations. Neither the Company nor any of its Subsidiaries has sent or received any communication regarding
termination of, or intent not to renew, any of the contracts or agreements referred to or described in the Registration Statement,
the Time of Sale Prospectus or the Prospectus, and no such termination or non-renewal has been threatened by the Company or any
of its Subsidiaries or, to the Company’s knowledge, any other party to any such contract or agreement, which threat of termination
or non-renewal has not been rescinded as of the date hereof.
(yy)
Integration. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would cause the offering of the Offered Shares to be integrated with prior offerings by the Company for purposes of the Securities
Act that would require the registration of any such securities under the Securities Act.
Any
certificate signed by any officer of the Company or any of its Subsidiaries and delivered to any Underwriter or to counsel for
the Underwriters in connection with the offering, or the purchase and sale, of the Offered Shares shall be deemed a representation
and warranty by the Company to each Underwriter as to the matters covered thereby.
The
Company has a reasonable basis for making each of the representations set forth in this Section 1. The Company acknowledges that
the Underwriters and, for purposes of the opinions to be delivered pursuant to Section 6 hereof, counsel to the Company and counsel
to the Underwriters, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such
reliance.
2.
Purchase, Sale and Delivery of the Offered Shares.
(a)
The Firm Shares. Upon the terms herein set forth, the Company agrees to issue and sell to the several Underwriters an aggregate
of 20,509,746 Firm Shares. On the basis of the representations, warranties and agreements herein contained, and upon the terms
but subject to the conditions herein set forth, the Underwriters agree, severally and not jointly, to purchase from the Company
the respective number of Firm Shares set forth opposite their names on Schedule A. The purchase price per Firm Share to
be paid by the several Underwriters to the Company shall be $1.344875 per share.
(b)
The First Closing Date. Delivery of book-entry entitlements for the Firm Shares to be purchased by the Underwriters and
payment therefor shall be made at the offices of Haynes and Boone, LLP, 30 Rockefeller Plaza, 26th Floor, New York,
NY 10112 (or such other place as may be agreed to by the Company and the Representative) at 10:00 a.m. Eastern time, on February
19, 2021, or such other time and date not later than 4:00 p.m. Eastern time, on February 19, 2021, as the Representative shall
designate by notice to the Company (the time and date of such closing are called the “First Closing Date”).
The Company hereby acknowledges that circumstances under which the Representative may provide notice to postpone the Closing Date
as originally scheduled include, but are not limited to, any determination by the Company or the Representative to recirculate
to the public copies of an amended or supplemented Prospectus or a delay as contemplated by the provisions of Section 11.
(c)
The Optional Shares; Option Closing Date. In addition, on the basis of the representations, warranties and agreements herein
contained, and upon the terms but subject to the conditions herein set forth, the Company hereby grants an option to the several
Underwriters to purchase, severally and not jointly, up to an aggregate of 3,076,461 Optional Shares from the Company at the purchase
price per share to be paid by the Underwriters for the Firm Shares. The option granted hereunder may be exercised at any time
and from time to time in whole or in part upon notice by the Representative to the Company, which notice may be given at any time
within 30 days from the date of this Agreement. Such notice shall set forth (i) the aggregate number of Optional Shares as to
which the Underwriters are exercising the option and (ii) the time, date and place at which book-entry entitlements for the Optional
Shares will be delivered (which time and date may be simultaneous with, but not earlier than, the First Closing Date; and in the
event that such time and date are simultaneous with the First Closing Date, the term “First Closing Date” shall
refer to the time and date of delivery of book-entry entitlements for the Firm Shares and such Optional Shares). Any such time
and date of delivery, if subsequent to the First Closing Date, is called an “Option Closing Date,” shall be
determined by the Representative and shall not be earlier than two or later than five full business days after delivery of such
notice of exercise. If any Optional Shares are to be purchased, (a) each Underwriter agrees, severally and not jointly, to purchase
the number of Optional Shares (subject to such adjustments to eliminate fractional shares as the Representative may determine)
that bears the same proportion to the total number of Optional Shares to be purchased as the number of Firm Shares set forth on
Schedule A opposite the name of such Underwriter bears to the total number of Firm Shares and (b) the Company agrees to
sell the number of Optional Shares set forth in the paragraph “Introductory” of this Agreement (subject to such adjustments
to eliminate fractional shares as the Representative may determine). The Representative may cancel the option at any time prior
to its expiration by giving written notice of such cancellation to the Company.
(d)
Public Offering of the Offered Shares. The Representative hereby advises the Company that the Underwriters intend to offer
for sale to the public, initially on the terms set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus,
their respective portions of the Offered Shares as soon after this Agreement has been executed as the Representative, in its sole
judgment, has determined is advisable and practicable.
(e)
Payment for the Offered Shares. Payment for the Offered Shares shall be made at the First Closing Date (and, if applicable,
at each Option Closing Date) by wire transfer of immediately available funds to the order of the Company. It is understood that
the Representative has been authorized, for their own account and the accounts of the several Underwriters, to accept delivery
of and receipt for, and make payment of the purchase price for, the Firm Shares and any Optional Shares the Underwriters have
agreed to purchase. Wainwright, individually and not as the Representative of the Underwriters, may (but shall not be obligated
to) make payment for any Offered Shares to be purchased by any Underwriter whose funds shall not have been received by the Representative
by the First Closing Date or the applicable Option Closing Date, as the case may be, for the account of such Underwriter, but
any such payment shall not relieve such Underwriter from any of its obligations under this Agreement.
(f)
Delivery of the Offered Shares. The Company shall deliver, or cause to be delivered to the Representative for the accounts
of the several Underwriters book-entry entitlements for, the Firm Shares at the First Closing Date, against the irrevocable release
of a wire transfer of immediately available funds for the amount of the purchase price therefor. The Company shall also deliver,
or cause to be delivered through the facilities of DTC unless the Representative shall otherwise instruct, to the Representative
for the accounts of the several Underwriters, book-entry entitlements for the Optional Shares the Underwriters have agreed to
purchase at the First Closing Date or the applicable Option Closing Date, as the case may be, against the release of a wire transfer
of immediately available funds for the amount of the purchase price therefor. If the Representative so elects, delivery of the
Offered Shares will be made by credit to the accounts designated by the Representative through The Depository Trust Company’s
full fast transfer or DWAC programs. Time shall be of the essence, and delivery at the time and place specified in this Agreement
is a further condition to the obligations of the Underwriters.
3.
Additional Covenants of the Company.
The
Company further covenants and agrees with each Underwriter as follows:
(a)
Delivery of Registration Statement, Time of Sale Prospectus and Prospectus. The Company shall furnish to you in New York
City, without charge, prior to 10:00 a.m. New York City time on the business day next succeeding the date of this Agreement and
during the period when a prospectus relating to the Offered Shares is required by the Securities Act to be delivered (whether
physically or through compliance with Rule 172 under the Securities Act or any similar rule) in connection with sales of the Offered
Shares, as many copies of the Time of Sale Prospectus, the Prospectus and any supplements and amendments thereto or to the Registration
Statement as you may reasonably request.
(b)
Representative’s Review of Proposed Amendments and Supplements. During the period when a prospectus relating to the
Offered Shares is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under
the Securities Act or any similar rule), the Company (i) will furnish to the Representative for review, a reasonable period of
time prior to the proposed time of filing of any proposed amendment or supplement to the Registration Statement, a copy of each
such amendment or supplement and (ii) will not amend or supplement the Registration Statement (including any amendment or supplement
through incorporation of any report filed under the Exchange Act) without the Representative’s prior written consent, not
to be unreasonably withheld, conditioned or delayed. Prior to amending or supplementing any preliminary prospectus, the Time of
Sale Prospectus or the Prospectus (including any amendment or supplement through incorporation of any report filed under the Exchange
Act), the Company shall furnish to the Representative for review, a reasonable amount of time prior to the time of filing or use
of the proposed amendment or supplement, a copy of each such proposed amendment or supplement. The Company shall not file or use
any such proposed amendment or supplement without the Representative’s prior written consent, not to be unreasonably withheld,
conditioned or delayed. The Company shall file with the Commission within the applicable period specified in Rule 424(b) under
the Securities Act any prospectus required to be filed pursuant to such Rule.
(c)
Free Writing Prospectuses. The Company shall furnish to the Representative for review, a reasonable amount of time prior
to the proposed time of filing or use thereof, a copy of each proposed free writing prospectus or any amendment or supplement
thereto prepared by or on behalf of, used by, or referred to by the Company, and the Company shall not file, use or refer to any
proposed free writing prospectus or any amendment or supplement thereto without the Representative’s prior written consent,
not to be unreasonably withheld, conditioned or delayed. The Company shall furnish to each Underwriter, without charge, as many
copies of any free writing prospectus prepared by or on behalf of, used by or referred to by the Company as such Underwriter may
reasonably request. If at any time when a prospectus is required by the Securities Act to be delivered (whether physically or
through compliance with Rule 172 under the Securities Act or any similar rule) in connection with sales of the Offered Shares
(but in any event if at any time through and including the Closing Date) there occurred or occurs an event or development as a
result of which any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company conflicted or
would conflict with the information contained in the Registration Statement or included or would include an untrue statement of
a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances prevailing at such time, not misleading, the Company shall promptly amend or supplement such free writing
prospectus to eliminate or correct such conflict so that the statements in such free writing prospectus as so amended or supplemented
will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances prevailing at such time, not misleading, as the case may be; provided, however,
that prior to amending or supplementing any such free writing prospectus, the Company shall furnish to the Representative for
review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of such proposed amended or supplemented
free writing prospectus, and the Company shall not file, use or refer to any such amended or supplemented free writing prospectus
without the Representative’s prior written consent, not to be unreasonably withheld, conditioned or delayed.
(d)
Filing of Underwriter Free Writing Prospectuses. The Company shall not take any action that would result in an Underwriter
or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus
prepared by or on behalf of such Underwriter that such Underwriter otherwise would not have been required to file thereunder.
(e)
Amendments and Supplements to Time of Sale Prospectus. If the Time of Sale Prospectus is being used to solicit offers to
buy the Offered Shares at a time when the Prospectus is not yet available to prospective purchasers, and any event shall occur
or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Prospectus so that the Time of
Sale Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances when delivered to a prospective purchaser, not misleading, or if
any event shall occur or condition exist as a result of which the Time of Sale Prospectus conflicts with the information contained
in the Registration Statement, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the
Time of Sale Prospectus to comply with applicable law, the Company shall (subject to Section 3(b) and Section 3(c) hereof) promptly
prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, either
amendments or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale Prospectus as so amended or
supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances when delivered to a prospective purchaser, not misleading or so that
the Time of Sale Prospectus, as amended or supplemented, will no longer conflict with the information contained in the Registration
Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will comply with applicable law.
(f)
Certain Notifications and Required Actions. During the period when a prospectus relating to the Offered Shares is required
by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any
similar rule), the Company shall promptly advise the Representative in writing of: (i) the receipt of any comments of, or requests
for additional or supplemental information from, the Commission; (ii) the time and date of any filing of any post-effective amendment
to the Registration Statement or any amendment or supplement to any preliminary prospectus, the Time of Sale Prospectus, any free
writing prospectus or the Prospectus; (iii) the time and date that any post-effective amendment to the Registration Statement
becomes effective; and (iv) the issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or any post-effective amendment thereto or any amendment or supplement to any preliminary prospectus, the Time of Sale
Prospectus or the Prospectus or of any order preventing or suspending the use of any preliminary prospectus, the Time of Sale
Prospectus, any free writing prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from listing
or quotation the Common Shares from any securities exchange upon which they are listed for trading or included or designated for
quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission shall enter any
such stop order at any time, the Company will use its best efforts to obtain the lifting of such order as soon as practicable.
Additionally, the Company agrees that it shall comply with all applicable provisions of Rule 424(b), Rule 433 and Rule 430B under
the Securities Act and will use its reasonable efforts to confirm that any filings made by the Company under Rule 424(b) or Rule
433 were received in a timely manner by the Commission.
(g)
Amendments and Supplements to the Prospectus and Other Securities Act Matters. If any event shall occur or condition exist
as a result of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
when the Prospectus is delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar
rule) to a purchaser, not misleading, or if in the opinion of the Representative or counsel for the Underwriters it is otherwise
necessary to amend or supplement the Prospectus to comply with applicable law, the Company agrees (subject to Section 3(b) and
Section 3(c) hereof) to promptly prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to
any dealer upon request, amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or
supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances when the Prospectus is delivered (whether physically or through compliance
with Rule 172 under the Securities Act or any similar rule) to a purchaser, not misleading or so that the Prospectus, as amended
or supplemented, will comply with applicable law. Neither the Representative’s consent to, nor delivery of, any such amendment
or supplement shall constitute a waiver of any of the Company’s obligations under Section 3(b) or Section 3(c).
(h)
Blue Sky Compliance. The Company shall cooperate with the Representative and counsel for the Underwriters to qualify or
register the Offered Shares for sale under (or obtain exemptions from the application of) the state securities or blue sky laws
(or other foreign laws as reasonably requested by the Underwriters and agreed to by the Company) of those jurisdictions designated
by the Representative, shall comply in all material respects with such laws and shall continue such qualifications, registrations
and exemptions in effect so long as required for the distribution of the Offered Shares. The Company shall not be required to
qualify as a foreign corporation or other entity or to take any action that would subject it to general service of process in
any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation or
other entity. The Company will advise the Representative promptly of the suspension of the qualification or registration of (or
any such exemption relating to) the Offered Shares for offering, sale or trading in any jurisdiction or any initiation or threat
of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration
or exemption, the Company shall use its reasonable best efforts to obtain the withdrawal thereof as soon as practicable.
(i)
Use of Proceeds. The Company shall apply the net proceeds from the sale of the Offered Shares sold by it in the manner
described under the caption “Use of Proceeds” in the Registration Statement, the Time of Sale Prospectus and the Prospectus.
(j)
Transfer Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Common Shares.
(k)
Earnings Statement. The Company will make generally available (which may be satisfied by filing with EDGAR) to its security
holders and to the Representative as soon as practicable an earnings statement (which need not be audited) covering a period of
at least twelve months beginning with the first fiscal quarter of the Company commencing after the date of this Agreement that
will satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder.
(l)
Continued Compliance with Securities Laws. The Company will comply with the Securities Act and the Exchange Act so as to
permit the completion of the distribution of the Offered Shares as contemplated by this Agreement, the Registration Statement,
the Time of Sale Prospectus and the Prospectus. Without limiting the generality of the foregoing, the Company will, during the
period when a prospectus relating to the Offered Shares is required by the Securities Act to be delivered (whether physically
or through compliance with Rule 172 under the Securities Act or any similar rule), file on a timely basis with the Commission
and the NASDAQ all reports and documents required to be filed under the Exchange Act.
(m)
Listing. The Company will use its commercially reasonable efforts to maintain the listing for trading of the Common Shares
on the Nasdaq Capital Market.
(n)
Company to Provide Copy of the Prospectus in Form That May be Downloaded from the Internet. If requested by the Representative,
the Company shall cause to be prepared and delivered, at its expense, within one business day from the effective date of this
Agreement, to Wainwright, an “electronic Prospectus” to be used by the Underwriters in connection with the
offering and sale of the Offered Shares. As used herein, the term “electronic Prospectus” means a form of Time
of Sale Prospectus, and any amendment or supplement thereto, that meets each of the following conditions: (i) it shall be encoded
in an electronic format, satisfactory to Wainwright, that may be transmitted electronically by Wainwright and the other Underwriters
to offerees and purchasers of the Offered Shares; (ii) it shall disclose the same information as the paper Time of Sale Prospectus,
except to the extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image
material shall be replaced in the electronic Prospectus with a fair and accurate narrative description or tabular representation
of such material, as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory
to Wainwright, that will allow investors to store and have continuously ready access to the Time of Sale Prospectus at any future
time, without charge to investors (other than any fee charged for subscription to the Internet as a whole and for on-line time).
The Company hereby confirms that it has included or will include in the Prospectus filed pursuant to EDGAR or otherwise with the
Commission and in the Registration Statement at the time it was declared effective an undertaking that, upon receipt of a request
by an investor or his or her representative, the Company shall transmit or cause to be transmitted promptly, without charge, a
paper copy of the Time of Sale Prospectus.
(o)
Agreement Not to Offer or Sell Common Shares. During the period commencing on and including the date hereof and continuing
through and including the 30th day following the date of the Prospectus, as extended as described below, the Company
will not, without the prior written consent of Wainwright (which consent may be withheld in its sole discretion), directly or
indirectly: (i) sell, offer to sell, contract to sell or lend any Common Shares or Related Securities (as defined below); (ii)
effect any short sale, or establish or increase any “put equivalent position” (as defined in Rule 16a-1(h) under the
Exchange Act) or liquidate or decrease any “call equivalent position “ (as defined in Rule 16a-1(b) under the Exchange
Act) of any Common Shares or Related Securities; (iii) pledge, hypothecate or grant any security interest in any Common Shares
or Related Securities; (iv) in any other way transfer or dispose of any Common Shares or Related Securities; (v) enter into any
swap, hedge or similar arrangement or agreement that transfers, in whole or in part, the economic risk of ownership of any Common
Shares or Related Securities, regardless of whether any such transaction is to be settled in securities, in cash or otherwise;
(vi) announce the offering of any Common Shares or Related Securities; (vii) file any registration statement under the Securities
Act under applicable securities laws in respect of any Common Shares or Related Securities (other than as contemplated by this
Agreement with respect to the Offered Shares); or (viii) publicly announce the intention to do any of the foregoing; provided,
however, that the Company may (A) effect the transactions contemplated hereby; (B) issue Common Shares or options to purchase
Common Shares or restricted stock units or similar equity securities, or issue Common Shares upon exercise of options, restricted
stock units or similar equity securities, pursuant to any options, share bonus or other share plan or arrangement pursuant to
an incentive plan in effect on the date hereof and described in the Registration Statement, the Time of Sale Prospectus and the
Prospectus; (C) file a registration statement on Form S-8 in respect of the issuance, vesting, exercise or settlement of equity
awards to officers or directors granted or to be granted pursuant to an incentive plan in effect on the date hereof and described
in the Registration Statement Time of Sale Prospectus and the Prospectus; (D) issue any Common Shares upon the exercise of an
option or warrant or upon the conversion of a convertible security outstanding on the date hereof and referred to in the Registration
Statement, the Time of Sale Prospectus and the Prospectus; (E) issue any shares of capital stock of the Company or securities
convertible into shares of capital stock of the Company that are issued as consideration in an acquisition, merger or similar
strategic transaction approved by a majority of the disinterested directors of the Company, provided that such securities are
issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit
the filing of any registration statement in connection therewith within thirty (30) days after the date of this Agreement, and
provided that any such issuance shall only be to a person (or to the equity holders of a person) which is, itself or through its
Subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall
provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities and (F) the issuance of the Underwriter Warrants and the shares of Common Stock issuable upon the exercise of such
Underwriter Warrants. For purposes of the foregoing, “Related Securities” shall mean any options or warrants
or other rights to acquire Common Shares or any securities exchangeable or exercisable for or convertible into Common Shares,
or to acquire other securities or rights ultimately exchangeable or exercisable for, or convertible into, Common Shares.
(p)
Investment Limitation. The Company shall not invest or otherwise use the proceeds received by the Company from its sale
of the Offered Shares in such a manner as would require the Company or any of its Subsidiaries to register as an investment company
under the Investment Company Act.
(q)
No Stabilization or Manipulation and Compliance with Regulation M. The Company will not take, and will use its reasonable
best efforts to ensure that no affiliate of the Company will take, directly or indirectly, without giving effect to activities
by the Underwriters, any action designed to or that might cause or result in stabilization or manipulation of the price of the
Common Shares or any reference security with respect to the Common Shares, whether to facilitate the sale or resale of the Offered
Shares or otherwise, and the Company will, and shall use its reasonable best efforts to cause each of its affiliates to, comply
with all applicable provisions of Regulation M.
(r)
Variable Rate Transactions. From the date hereof until the first (1st) anniversary of the First Closing Date, without the
prior written consent of the Representative, the Company shall be prohibited from effecting or entering into an agreement to effect
any issuance by the Company or any of its Subsidiaries of Common Shares or any securities of the Company or its Subsidiaries which
would entitle the holder thereof to acquire at any time Common Shares (including, without limitation, any debt, preferred stock,
right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Shares (or a combination of units thereof) involving a Variable Rate Transaction
(as defined herein). “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary
(i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right
to receive additional Common Shares either (A) at a conversion price, exercise price or exchange rate or other price that is based
upon and/or varies with the trading prices of or quotations for the Common Shares at any time after the initial issuance of such
debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future
date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly
or indirectly related to the business of the Company or the market for the Common Shares or (ii) enters into, or effects a transaction
under, any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future
determined price. Notwithstanding the foregoing, upon the completion of the restrictive period set forth in Section 3(o), the
Company may enter into and effect sales pursuant to an at–the-market offering facility with the Representative. The Representative
shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition
to any right to collect damages.
(s)
Company to Provide Interim Financial Statements. Prior to the First Closing Date and each applicable Option Closing Date,
the Company will furnish the Underwriters, as soon as they have been prepared by or are available to the Company, a copy of any
unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial
statements appearing in the Registration Statement and the Prospectus.
The
Representative, on behalf of the several Underwriters, may, in its sole discretion, waive in writing the performance by the Company
of any one or more of the foregoing covenants or extend the time for their performance.
4.
Payment of Expenses. The Company agrees to pay all costs, fees and expenses incurred in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby, including without limitation (i) all
expenses incident to the issuance and delivery of the Offered Shares (including all printing and engraving costs), (ii) all fees
and expenses of the registrar and transfer agent of the Offered Shares, (iii) all necessary issue, transfer and other stamp taxes
in connection with the issuance and sale of the Offered Shares to the Underwriters, (iv) all fees and expenses of the Company’s
counsel, independent public or certified public accountant and other advisors, (v) all costs and expenses incurred in connection
with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements,
exhibits, schedules, consents and certificates of experts), the Time of Sale Prospectus, the Prospectus, each free writing prospectus
prepared by or on behalf of, used by, or referred to by the Company, and each Preliminary Prospectus, and all amendments and supplements
thereto, and this Agreement, (vi) all filing fees, attorneys’ fees and expenses incurred by the Company or the Underwriters
in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part
of the Offered Shares for offer and sale under the state securities or blue sky laws, and, if requested by the Representative,
preparing and printing a “Blue Sky Survey” or memorandum, and any supplements thereto, advising the Underwriters of
such qualifications, registrations and exemptions, (vii) the costs, fees and expenses incurred by the Underwriters in connection
with determining their compliance with the rules and regulations of FINRA related to the Underwriters’ participation in
the offering and distribution of the Offered Shares, including any related filings fees and the legal fees of, and disbursements
by, counsel to the Underwriters, (viii) the costs and expenses of the Company relating to investor presentations on any “road
show”, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show,
expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection
with the road show presentations with the prior approval of the Company, reasonable travel and lodging expenses of the Representative
approved by the Company in advance, employees and officers of the Company and any such consultants, (ix) the fees and expenses
associated with listing the Offered Shares on the Nasdaq Global Select Market of the NASDAQ, (x) all other fees, costs and expenses
of the nature referred to in Item 14 of Part II of the Registration Statement, (xi) all actual and documented out-of-pocket expenses
and all fees of the Underwriters’ legal counsel and other out-of-pocket expenses of the Underwriters reasonably incurred
in connection with the transactions contemplated hereby; provided, that the amount payable in respect of expenses of the Underwriters
pursuant to the foregoing clauses (vi), (vii) and (xi) in the aggregate shall not exceed $100,000, (xii) the costs and fees of
any escrow agent and the actual out-of-pocket costs incurred by the Underwriters in connection with clearing agent settlement
and financing, which cost shall not exceed $15,950, (xiii) $50,000 to Wainwright for non-accountable expenses, and (xiv) a management
fee to Wainwright equal to 1% of the gross proceeds raised by the Company in the offering on the Closing Date (assuming the public
offering price). Any such amount payable to the Underwriters may be deducted from the purchase price for the Offered Shares.
5.
Covenant of the Underwriters. Each Underwriter severally and not jointly covenants with the Company not to take any action
that would result in the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a
free writing prospectus prepared by or on behalf of such Underwriter that otherwise would not, but for such actions, be required
to be filed by the Company under Rule 433(d).
6.
Conditions of the Obligations of the Underwriters. The respective obligations of the several Underwriters hereunder to
purchase and pay for the Offered Shares as provided herein on the First Closing Date and, with respect to the Optional Shares,
each Option Closing Date, shall be subject to the accuracy of the representations and warranties on the part of the Company set
forth in Section 1 hereof as of the date hereof and as of the First Closing Date as though then made and, with respect to the
Optional Shares, as of each Option Closing Date as though then made, to the timely performance by the Company of its covenants
and other obligations hereunder, and to each of the following additional conditions:
(a)
Comfort Letter. On the date hereof, the Representative shall have received from PricewaterhouseCoopers LLP, independent
registered public accountant for the Company, a letter dated the date hereof addressed to the Underwriters, in form and substance
satisfactory to the Representative, containing statements and information of the type ordinarily included in accountant’s
“comfort letters” to underwriters, delivered according to Statement of Auditing Standards No. 72 (or any successor
bulletin), with respect to the audited and unaudited financial statements and certain financial information contained in the Registration
Statement, the Time of Sale Prospectus, and each free writing prospectus, if any.
(b)
Compliance with Registration Requirements; No Stop Order; No Objection from FINRA. For a period from and after the date
of this Agreement and through and including the First Closing Date and, with respect to any Optional Shares purchased after the
First Closing Date, each Option Closing Date:
(i)
The Company shall have filed the Prospectus with the Commission (including the information required by Rule 430A under the Securities
Act) in the manner and within the time period required by Rule 424(b) under the Securities Act; or the Company shall have filed
a post-effective amendment to the Registration Statement containing the information required by such Rule 430A, and such post-effective
amendment shall have become effective.
(ii)
No stop order suspending the effectiveness of the Registration Statement or any post-effective amendment to the Registration Statement
shall be in effect, and no proceedings for such purpose shall have been instituted or threatened by the Commission.
(iii)
FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms and arrangements.
(c)
No Material Adverse Change. For the period from and after the date of this Agreement and through and including the First
Closing Date and, with respect to any Optional Shares purchased after the First Closing Date, each Option Closing Date, in the
judgment of the Representative there shall not have occurred any material adverse change in the authorized capital stock of the
Company or any Material Adverse Effect or any development that would cause a Material Adverse Effect.
(d)
Opinion of Counsel for the Company. On each of the First Closing Date and each Option Closing Date, the Representative
shall have received (i) the opinion and negative assurance letter of Lowenstein Sandler LLP, U.S. counsel for the Company, dated
as of such date in form and substance reasonably satisfactory to the Underwriters, dated as of such date, and (ii) the opinion
of Norton Rose Fulbright, Canadian counsel for the Company, dated as of such date in form and substance satisfactory to the Underwriters,
dated as of such date.
(e)
Opinion of Counsel for the Underwriters. On each of the First Closing Date and each Option Closing Date, the Representative
shall have received the opinion of Haynes and Boone, LLP, counsel for the Underwriters in connection with the offer and sale of
the Offered Shares, in form and substance satisfactory to the Underwriters, dated as of such date.
(f)
Officers’ Certificate. On each of the First Closing Date and each Option Closing Date, the Representative shall have
received a certificate executed by the Chief Executive Officer or President of the Company and the Chief Financial Officer of
the Company, dated as of such date, to the effect set forth in Section 6(b)(ii) and further to the effect that:
(i)
for the period from and including the date of this Agreement through and including such date, there has not occurred any Material
Adverse Effect;
(ii)
the representations, warranties and covenants of the Company set forth in Section 1 of this Agreement are true and correct with
the same force and effect as though expressly made on and as of such date; and
(iii)
the Company has complied with all the agreements hereunder and satisfied all the conditions on its part to be performed or satisfied
hereunder at or prior to such date.
(g)
Chief Financial Officer’s Certificate. On each of the First Closing Date and each Option Closing Date, the Representative
shall have received a certificate executed by the Chief Financial Officer of the Company, dated as of such date, in form and substance
reasonably satisfactory to the Underwriters, dated as of such date.
(h)
Bring-down Comfort Letter. On each of the First Closing Date and each Option Closing Date the Representative shall have
received from PricewaterhouseCoopers LLP, independent registered public accountants for the Company, a letter dated such date,
in form and substance satisfactory to the Representative, which letter shall: (a) reaffirm the statements made in the letter furnished
by them pursuant to Section 6(a), except that the specified date referred to therein for the carrying out of procedures shall
be no more than three business days prior to the First Closing Date or the applicable Option Closing Date, as the case may be.
(i)
[Reserved].
(j)
Rule 462(b) Registration Statement. In the event that a Rule 462(b) Registration Statement is filed in connection with
the offering contemplated by this Agreement, such Rule 462(b) Registration Statement shall have been filed with the Commission
on the date of this Agreement and shall have become effective automatically upon such filing.
(k)
Nasdaq Listing. The Company shall have submitted a listing of additional shares notification form to each of the Toronto
Stock Exchange (“TSX”) and the NASDAQ with respect to the Offered Shares and shall have received no objection
thereto from the TSX and NASDAQ, respectively, and shall have received a conditional listing approval that is subject only to
customary listing conditions.
(l)
Additional Documents. On or before each of the First Closing Date and each Option Closing Date, the Representative and
counsel for the Underwriters shall have received such information, documents and opinions as they may reasonably request for the
purposes of enabling them to pass upon the issuance and sale of the Offered Shares as contemplated herein, or in order to evidence
the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein
contained; and all proceedings taken by the Company in connection with the issuance and sale of the Offered Shares as contemplated
herein and in connection with the other transactions contemplated by this Agreement shall be satisfactory in form and substance
to the Representative and counsel for the Underwriters.
If
any condition specified in this Section 6 is not satisfied when and as required to be satisfied, this Agreement may be terminated
by the Representative by notice from the Representative to the Company at any time on or prior to the First Closing Date and,
with respect to the Optional Shares, at any time on or prior to the applicable Option Closing Date, which termination shall be
without liability on the part of any party to any other party, except that Section 4, Section 7, Section 9 and Section 10 shall
at all times be effective and shall survive such termination.
7.
Reimbursement of Underwriters’ Expenses. If this Agreement is terminated by the Representative pursuant to Section
6, Section 11 or Section 12, or if the sale to the Underwriters of the Offered Shares on the Closing Date is not consummated because
of any refusal, inability or failure on the part of the Company to perform any agreement herein or to comply with any provision
hereof, the Company agrees to reimburse the Representative and the other Underwriters (or such Underwriters as have terminated
this Agreement with respect to themselves), severally, upon demand for all out-of-pocket expenses that shall have been reasonably
incurred by the Representative and the Underwriters in connection with the proposed purchase and the offering and sale of the
Offered Shares, including, but not limited to, fees and disbursements of counsel, printing expenses, travel expenses, postage,
facsimile and telephone charges, in accordance with Section 4.
8.
Effectiveness of this Agreement. This Agreement shall become effective upon the execution and delivery hereof by the parties
hereto.
9.
Indemnification.
(a)
Indemnification of the Underwriters. The Company shall indemnify and hold harmless each Underwriter, its affiliates, the
directors, officers, employees, counsel and agents of each Underwriter and each person, if any, who controls each Underwriter
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses,
claims, liabilities, expenses and damages (including any and all investigative, legal and other expenses reasonably incurred in
connection with, and any amount paid in settlement of, any action, suit or proceeding between any of the indemnified parties and
any indemnifying parties or between any indemnified party and any third party, or otherwise, or any claim asserted), to which
they, or any of them, may become subject under the Securities Act, the Exchange Act or other Federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based
on (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment
thereto), including any information deemed to be a part thereof pursuant to Rules 430A, 430B or 430C, as applicable or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not
misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus,
any preliminary prospectus supplement, the Base Prospectus, any free writing prospectus, the Time of Sale Prospectus or the Prospectus
(or any amendment or supplement to any of the foregoing) or the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (iii)
any untrue statement or alleged untrue statement of a material fact contained in any materials or information provided to investors
by, or with the approval of, the Company in connection with the marketing of the offering of the Offered Shares, including any
roadshow or investor presentations made to investors by the Company (whether in person or electronically) or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that the Company shall not be liable to the extent that
such loss, claim, liability, expense or damage arises from the sale of the Offered Shares in the public offering to any person
by an Underwriter and is based on an untrue statement or omission or alleged untrue statement or omission made in reliance on
and in conformity with Underwriter Information. This indemnity agreement will be in addition to any liability that the Company
might otherwise have.
(b)
Indemnification of the Company, its Directors and Officers. Each Underwriter shall indemnify and hold harmless the Company,
its agents, each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, each director of the Company and each officer of the Company who signs the Registration Statement to the
same extent as the foregoing indemnity from the Company to each Underwriter, but only insofar as losses, claims, liabilities,
expenses or damages arise out of or are based on any untrue statement or omission or alleged untrue statement or omission made
in reliance on and in conformity with Underwriter Information. This indemnity will be in addition to any liability that each Underwriter
might otherwise have. The Company hereby acknowledges that the only information that the Underwriters have furnished to the Company
expressly for use in the Registration Statement, any preliminary prospectus, any preliminary prospectus supplement, the Base Prospectus,
any free writing prospectus, the Time of Sale Prospectus or the Prospectus (or any amendment or supplement to any of the foregoing)
are the statements set forth in the sixth and eighteenth paragraphs under the caption “Underwriting” in the Preliminary
Prospectus and Prospectus (the “Underwriter Information”). Notwithstanding any other provision of this Agreement,
including this Section 9, to the contrary, in no event shall any Underwriter’s aggregate liability for indemnification hereunder
exceed the underwriting discounts and commissions received by it.
(c)
Notifications and Other Indemnification Procedures. Any party that proposes to assert the right to be indemnified under
this Section 9 shall, promptly after receipt of notice of commencement of any action against such party in respect of which a
claim is to be made against an indemnifying party or parties under this Section 9, notify each such indemnifying party of the
commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party shall
not relieve the indemnifying party from any liability that it may have to any indemnified party under the foregoing provisions
of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses
by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party
of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering
written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified
party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably
satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to
assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses except
as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection
with the defense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses
and other charges of such counsel will be at the expense of such indemnified party unless (i) the employment of counsel by the
indemnified party has been authorized in writing by the indemnifying party, (ii) the indemnified party has reasonably concluded
(based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different
from or in addition to those available to the indemnifying party, (iii) the indemnified party has reasonably concluded that a
conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and
the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on
behalf of the indemnified party) or (iv) the indemnifying party has not in fact employed counsel reasonably satisfactory to the
indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of
the action, in each of which cases the reasonable fees, disbursements and other charges of counsel shall be at the expense of
the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding
or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than
one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such
fees, disbursements and other charges shall be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying
party shall not be liable for any settlement of any action or claim effected without its written consent (which consent will not
be unreasonably withheld or delayed). No indemnifying party shall, without the prior written consent of each indemnified party,
settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating
to the matters contemplated by this Section 9 (whether or not any indemnified party is a party thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise
out of such claim, action or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party. Notwithstanding the foregoing, if at any time an indemnified party shall
have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by Section 9(a) effected without its written consent
if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii)
such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request
prior to the date of such settlement.
10.
Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification provided
for in the foregoing paragraphs of Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable
from the Company or the Underwriters, the Company and the Underwriters shall contribute to the total losses, claims, liabilities,
expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount
paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by
the Company from persons other than the Underwriters, such as persons who control the Company within the meaning of the Securities
Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution)
to which the Company and the Underwriters may be subject in such proportion as shall be appropriate to reflect the relative benefits
received by the Company on the one hand and the Underwriters on the other. The relative benefits received by the Company on the
one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters,
in each case as set forth in the table on the cover page of the Prospectus. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on
the one hand, and the Underwriters, on the other, with respect to the statements or omissions which resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect
to such offering. Such relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or Representative
on behalf of the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable
if contributions pursuant to this Section 10 were to be determined by pro rata allocation or by any other method of allocation
(even if the Underwriters were treated as one entity for such purpose) which does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense or damage,
or action in respect thereof, referred to above in this Section 10 shall be deemed to include, for purpose of this Section 10,
any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 10, no Underwriter shall be required to contribute any amount
in excess of the underwriting discounts and commissions received by it, and no person found guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The Underwriters’ obligation to contribute as provided in this Section 10 are several
in proportion to their respective underwriting obligations and not joint. In addition, notwithstanding anything contained herein
to the contrary, in no event shall an Underwriter’s obligation to contribute as provided in this Section 10 exceed the underwriting
discounts and commissions received by such Underwriter. For purposes of this Section 10, any person who controls a party to this
Agreement within the meaning of the Securities Act will have the same rights to contribution as that party, and each officer of
the Company who signed the Registration Statement will have the same rights to contribution as the Company, and each director,
officer, employee, counsel or agent of any Underwriter will have the same rights to contribution as such Underwriter, subject
in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of
any action against such party in respect of which a claim for contribution may be made under this Section 10, will notify any
such party or parties from whom contribution may be sought, but the omission so to notify will not relieve the party or parties
from whom contribution may be sought from any other obligation it or they may have under this Section 10. No party will be liable
for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably
withheld).
11.
Default of One or More of the Several Underwriters. If, on the First Closing Date or any Option Closing Date any one or
more of the several Underwriters shall fail or refuse to purchase Offered Shares that it or they have agreed to purchase hereunder
on such date, and the aggregate number of Offered Shares which such defaulting Underwriter or Underwriters agreed but failed or
refused to purchase does not exceed 10% of the aggregate number of the Offered Shares to be purchased on such date, the Representative
may make arrangements satisfactory to the Company for the purchase of such Offered Shares by other persons, including any of the
Underwriters, but if no such arrangements are made by such date, the other Underwriters shall be obligated, severally and not
jointly, in the proportions that the number of Firm Shares set forth opposite their respective names on Schedule A bears to the
aggregate number of Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions
as may be specified by the Representative with the consent of the non-defaulting Underwriters, to purchase the Offered Shares
which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date. If, on the First Closing
Date or any Option Closing Date any one or more of the Underwriters shall fail or refuse to purchase Offered Shares and the aggregate
number of Offered Shares with respect to which such default occurs exceeds 10% of the aggregate number of Offered Shares to be
purchased on such date, and arrangements satisfactory to the Representative and the Company for the purchase of such Offered Shares
are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party
except that the provisions of Section 4, Section 7, Section 9 and Section 10 shall at all times be effective and shall survive
such termination (except with respect to any defaulting Underwriter hereunder). In any such case either the Representative or
the Company shall have the right to postpone the First Closing Date or the applicable Option Closing Date, as the case may be,
but in no event for longer than seven days in order that the required changes, if any, to the Registration Statement and the Prospectus
or any other documents or arrangements may be effected.
As
used in this Agreement, the term “Underwriter” shall be deemed to include any person substituted for a defaulting
Underwriter under this Section 11. Any action taken under this Section 11 shall not relieve any defaulting Underwriter from liability
in respect of any default of such Underwriter under this Agreement.
12.
Termination of this Agreement. Prior to the purchase of the Firm Shares by the Underwriters on the First Closing Date,
this Agreement may be terminated by the Representative by notice given to the Company if at any time: (i) trading or quotation
in any of the Company’s securities shall have been suspended or limited by the Commission, any other securities regulatory
authority, or by the NASDAQ or trading in securities generally on the NASDAQ, the NYSE, or the NYSE American shall have been suspended
or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges; (ii) a general
banking moratorium shall have been declared by any of U.S. federal or New York authorities or a major disruption of securities
settlements or clearing services in the United States shall have occurred and be continuing; (iii) there shall have occurred any
outbreak or escalation of national or international hostilities or any crisis or calamity, or any substantial change in the United
States or international financial markets, or any substantial change or development involving a prospective substantial change
in United States’ or international political, financial or economic conditions, as in the judgment of the Representative
is material and adverse and makes it impracticable to market the Offered Shares in the manner and on the terms described in the
Time of Sale Prospectus or the Prospectus or to enforce contracts for the sale of securities; (iv) in the good faith judgment
of the Representative there shall have occurred any material adverse change, or any development or event involving a prospective
material adverse change, in the condition, financial or otherwise, or in the business, properties, earnings, results of operations
or prospects of the Company and its Subsidiaries considered as one enterprise, whether or not arising in the ordinary course of
business; or (v) the Company shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such
character as in the judgment of the Representative may interfere materially with the conduct of the business and operations of
the Company regardless of whether or not such loss shall have been insured. Any termination pursuant to this Section 12 shall
be without liability on the part of (a) the Company to any Underwriter, except that the Company shall be obligated to reimburse
the expenses of the Representative and the Underwriters pursuant to Section 4 and Section 7 hereof or (b) any Underwriter to the
Company; provided, however, that the provisions of Section 9 and Section 10 shall at all times be effective and shall survive
such termination.
13.
No Advisory or Fiduciary Relationship. The Company acknowledges and agrees that (i) the purchase and sale of the Offered
Shares pursuant to this Agreement, including the determination of the public offering price of the Offered Shares and any related
discounts and commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and the several
Underwriters, on the other hand, (ii) in connection with the offering contemplated hereby and the process leading to such transaction,
each Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company, or its stockholders,
or its creditors, employees or any other party, (iii) no Underwriter has assumed or will assume an advisory or fiduciary responsibility
in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether
such Underwriter has advised or is currently advising the Company on other matters) and no Underwriter has any obligation to the
Company with respect to the offering contemplated hereby except the obligations expressly set forth in this Agreement, (iv) the
Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ
from those of the Company, and (v) the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect
to the offering contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the
extent it deemed appropriate.
14.
Representations and Agreements to Survive Delivery. The respective indemnities, contributions, agreements, representations,
warranties and other statements of the Company, of its officers and of the several Underwriters set forth in or made pursuant
to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Underwriter
or the Company or any of its or their partners, officers, directors or employees or any controlling person, as the case may be,
and, anything herein to the contrary notwithstanding, will survive delivery of and payment for the Offered Shares sold hereunder
and, subject to Section 11 hereof, any termination of this Agreement.
15.
Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed
to the parties hereto as follows:
| If
to the Representative: |
H.C.
Wainwright & Co., LLC |
| |
430
Park Avenue, 4th Floor |
| |
New
York, NY 10022 |
| |
Facsimile:
(212) 214-0803 |
| |
Attention:
Head of Investment Banking |
| |
|
| with
a copy to: |
Haynes
and Boone, LLP |
| |
30
Rockefeller Plaza, 26th Floor |
| |
New
York, NY 10112 |
| |
Attention:
Rick A. Werner |
| |
|
| If
to the Company: |
Aeterna
Zentaris Inc. |
| |
315
Sigma Drive |
| |
Summerville,
South Carolina, USA 29486 |
| |
Attention:
Klaus Paulini, Ph.D. |
| |
|
| with
a copy to: |
Lowenstein
Sandler LLP |
| |
1251
Avenue of the Americas |
| |
New
York, NY 10020 |
|
Attention:
Steven
M. Skolnick, |
| Esq. |
|
Each
party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new
address for such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable
facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such
day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized
overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean any day
on which the Exchange and commercial banks in the City of New York are open for business.
An
electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section
15 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed
received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving
Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic
Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic
Notice.
16.
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Underwriters
and their respective successors and the parties referred to in Section 9 hereof. References to any of the parties contained in
this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party;
provided, however, that an Underwriter may assign its rights and obligations hereunder to an affiliate thereof without obtaining
the Company’s consent.
17.
Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision
of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes
(and only such minor changes) as are necessary to make it valid and enforceable.
18.
Entire Agreement; Amendment; Severability; Waiver. This Agreement (including all schedules and exhibits attached hereto
issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings,
both written and oral, among the parties hereto with regard to the subject matter hereof. Notwithstanding anything herein to the
contrary, the engagement agreement dated February 14, 2021, between the Company and Wainwright, shall continue to be effective
and continue to survive and be enforceable by the parties in accordance with their terms. Neither this Agreement nor any term
hereof may be amended except pursuant to a written instrument executed by the Company and the Underwriters. In the event that
any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the
fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be
construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that
giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of
the parties as reflected in this Agreement. No implied waiver by a party shall arise in the absence of a waiver in writing signed
by such party. No failure or delay in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power,
or privilege hereunder.
19.
GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK
CITY TIME. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
20.
CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT
IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES
PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF
(CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT
AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.
21.
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other
may be made by facsimile or electronic transmission.
22.
Construction.
(a)
the section and exhibit headings herein are for convenience only and shall not affect the construction hereof;
(b)
words defined in the singular shall have a comparable meaning when used in the plural, and vice versa;
(c)
the words “hereof,” “hereto,” “herein” and “hereunder” and words of similar import,
when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;
(d)
wherever the word “include,” “includes” or “including” is used in this Agreement, it shall
be deemed to be followed by the words “without limitation”;
(e)
references herein to any gender shall include each other gender;
(f)
references herein to any law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority shall
be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority
as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules, policies,
notices, instruments and regulations promulgated thereunder;
(g)
if the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day
that is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to
the next succeeding Business Day;
(h)
“knowledge” means, as it pertains to the Company, the actual knowledge of the executive officers and directors
of the Company, together with the knowledge which they would have had if they had conducted a reasonable inquiry of the relevant
persons into the relevant subject matter; and
(i)
“Governmental Authority” means (i) any federal, state, local, municipal, national or international government
or governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or
instrumentality, court, tribunal, arbitrator or arbitral body (public or private); (ii) any self-regulatory organization (including
any stock exchange or quotation system); or (iii) any political subdivision of any of the foregoing.
23.
General Provisions.
Each
of the parties hereto acknowledges that it is a sophisticated business person who was adequately represented by counsel during
negotiations regarding the provisions hereof, including, without limitation, the indemnification provisions of Section 9 and the
contribution provisions of Section 10, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges
that the provisions of Section 9 and Section 10 hereof fairly allocate the risks in light of the ability of the parties to investigate
the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement,
any preliminary prospectus, the Time of Sale Prospectus, each free writing prospectus and the Prospectus (and any amendments and
supplements to the foregoing), as contemplated by the Securities Act and the Exchange Act.
[This
Page Intentionally Left Blank
Signature
Page Follows]
If
the foregoing correctly sets forth the understanding between the Company and the Underwriters, please so indicate in the space
provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Underwriters.
| |
Very
truly yours,
AETERNA
ZENTARIS INC. |
| |
|
|
| |
By: |
/s/
Klaus Paulini, Ph.D. |
| |
Name: |
Klaus
Paulini, Ph.D. |
| |
Title: |
Chief
Executive Officer |
| |
ACCEPTED
as of the date first-above written: |
| |
|
| |
H.C.
WAINWRIGHT & CO., LLC |
| |
|
|
| |
By: |
/s/
Mark W. Viklund |
| |
Name: |
Mark
W. Viklund |
| |
Title: |
Chief
Executive Officer |
Signature
Page
Underwriting
Agreement
Schedule
A
| Underwriters | |
Number of Firm Shares to be Purchased | |
| H.C. Wainwright & Co., LLC | |
| 20,509,746 | |
| Total | |
$ | 29,739,131.70 | |
Schedule
B
Free
Writing Prospectuses Included in the Time of Sale Prospectus
FWP
filed with the SEC on February 16, 2021
FWP
filed with the SEC on February 16, 2021
Schedule
C
Pricing
Information
Firm
Shares: 20,509,746
Optional
Shares: 3,076,461
Price
to Public: $1.45
Underwriters’
Discount: $0.105125
Schedule
D
Subsidiaries
Aeterna
Zentaris GmbH
Zentaris
IVF GmbH
Aeterna
Zentaris, Inc. (Delaware)
