Stockholders’ Equity

9 Months Ended

Sep. 30, 2020

9. Stockholders’ Equity

Private Investment

On January 27, 2020, the Company entered into the Securities Purchase Agreement with Innoviva, pursuant to which the Company agreed to issue and sell to Innoviva, in a Private Placement, 8,710,800 newly issued shares of the Company’s common stock and warrants to purchase 8,710,800 shares of common stock, with an exercise price per share of $2.87. Each share of common stock was sold together with one common warrant granting the warrant holder the right to purchase an additional share of common stock at $2.87 per share. The Private Placement occurred in two tranches. The first closing occurred on February 12, 2020, at which time Innoviva purchased 993,139 Common Units in exchange for an aggregate gross cash payment of approximately $2.8 million. On March 27, 2020, the second closing occurred subsequent to shareholder approval, at which time Innoviva purchased 7,717,661 Common Units in exchange for aggregate gross proceeds of $22.2 million.

The warrants expire five years from the issuance date. The Company reviewed the authoritative accounting guidance and determined that the warrants meet the criteria to be accounted for as permanent equity.

Warrants

At September 30, 2020, outstanding warrants to purchase shares of common stock are as follows:


Shares Underlying
Outstanding	Exercise		Expiration
Warrants	Price		Date
2,246	$	567.00	March 31, 2021
597,881	$	21.00	May 10, 2022
1,235,491	$	5.60	October 16, 2023
993,139	$	2.87	February 12, 2025
7,717,661	$	2.87	March 27, 2025
1,200	$	1,680.00	None
10,547,618