Item 1.01. Entry Into a Material Definitive Agreement.
On June 22, 2022, Applied Therapeutics, Inc. (the "Company") entered into an
underwriting agreement (the "Underwriting Agreement") with SVB Securities LLC
(the "Underwriter"), relating to the issuance and sale pursuant to an
underwritten public offering (the "Offering") of 20,000,000 shares (the
"Shares") of its common stock, par value $0.0001 per share (the "Common Stock"),
10,000,000 pre-funded warrants to purchase Common Stock in lieu of Shares (the
"Pre-Funded Warrants") at an exercise price of $0.0001 per share, and
accompanying warrants to purchase up to 30,000,000 shares of its Common Stock
(the "Common Warrants" and together with the Pre-Funded Warrants, the
"Warrants") at an exercise price of $1.00 per share (the Shares and Warrants
together, the "Securities"). Each share of Common Stock and accompanying Common
Warrant was sold at a public offering price of $1.00, less underwriting
discounts and commissions, and each Pre-Funded Warrant and accompanying Common
Warrant was sold at a public offering price of $0.9999, less underwriting
discounts and commissions, as described in the prospectus supplement, dated
June 22, 2022, filed with the Securities and Exchange Commission on June 24,
2022. The Pre-Funded Warrants and the Common Warrants are immediately
exercisable and will expire five years from the date of issuance. Holders may
not exercise any Pre-Funded Warrants or Common Warrants that would cause the
aggregate number of shares of Common Stock beneficially owned by the holder to
exceed 9.99% of the Company's outstanding Common Stock immediately after
exercise. Holders of the Warrants (together with affiliates) who immediately
prior to the issue date beneficially own more than 9.99% of outstanding Common
Stock may not exercise any portion of their Pre-Funded Warrants or Common
Warrants if the holder (together with affiliates) would beneficially own more
than 19.99% of the Company's outstanding Common Stock after exercise. The
Warrants are subject to adjustment in the event of certain stock dividends and
distributions, stock splits, stock combinations, reclassifications or similar
events affecting the Common Stock and also upon any distributions for no
consideration of assets to the Company's stockholders. In the event of certain
corporate transactions, the holders of the Warrants will be entitled to receive,
upon exercise of the Warrants, the kind and amount of securities, cash or other
property that the holders would have received had they exercised the Warrants
immediately prior to such transaction. The Warrants do not entitle the holders
thereof to any voting rights or any of the other rights or privileges to which
holders of Common Stock are entitled. The Company intends to use the net
proceeds from this Offering for general corporate purposes. General corporate
purposes may include research and development costs, including the conduct of
clinical trials and process development and manufacturing of the Company's
product candidates, expansion of the Company's research and development
capabilities, working capital and capital expenditures. Entities affiliated with
Alexandria Venture Investments, LLC, which, as of March 31, 2022, owned 13.1% of
the Company's outstanding Common Stock, purchased 3,500,000 shares and 1,500,000
Pre-Funded Warrants in the Offering.
The Offering closed on June 27, 2022.
The foregoing summary of the Underwriting Agreement, Pre-Funded Warrants and
Common Warrants does not purport to be complete and is subject to, and qualified
in its entirety by, the Underwriting Agreement, which is filed herewith as
Exhibit 1.1 and incorporated herein by reference, the form of Pre-Funded
Warrant, which is filed herewith as Exhibit 4.1 and incorporated herein by
reference, and the form of Common Warrant, which is filed herewith as
Exhibit 4.2 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
The following exhibit is attached with this current report on Form 8-K:
Exhibit
No. Description
1.1 Underwriting Agreement, dated June 22, 2022, between the Company and
SVB Securities LLC.
4.1 Form of Pre-Funded Warrant to Purchase Common Stock.
4.2 Form of Common Warrant to Purchase Common Stock.
5.1 Opinion of Skadden, Arps, Slate, Meagher & Flom LLP regarding the
legality of the Securities in the Offering.
23.1 Consent of Skadden, Arps, Slate, Meagher & Flom LLP (included in
Exhibit 5.1).
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
© Edgar Online, source Glimpses