Aytu BioScience (AYTU) Prices 3.03M Share and Warrant Offering at $1.25/sh

Aytu BioPharma, Inc. (NASDAQ: AYTU), a pharmaceutical company focused on developing and commercializing novel therapeutics, today announced the placement to a healthcare-dedicated institutional investor in an underwritten offering of 3,030,000 shares of its common stock, pre-funded warrants to purchase up to 3,030,000 shares of its common stock, and common warrants to purchase up to 6,666,000 shares of its common stock (the "Offering"). The shares of common stock and the pre-funded warrants are each being sold in combination with corresponding common warrants, with one common warrant to purchase 1.1 shares of common stock for each share of common stock or each pre-funded warrant sold. The aggregate offering price for each share of common stock or each pre-funded warrant and, in each case, an accompanying common warrant to purchase 1.1 shares of common stock is $1.25. The pre-funded warrants will have an exercise price of $0.0001 per share of common stock, and the common warrants will have an exercise price of $1.30 per share of common stock. The pre-funded warrants will be immediately exercisable and remain exercisable until exercised, while the common warrants will be exercisable six months after the date of issuance and will have a term of five years from the date of exercisability. All securities to be sold in the Offering were sold by the Company.

The gross proceeds from the Offering are expected to be approximately $7.6 million, assuming none of the accompanying common warrants issued in the Offering are exercised. The Company expects to close the Offering on or about March 7, 2022, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the Offering for growth of the company's commercial business, advancing the development of its pipeline assets including initiating the PREVEnt Trial evaluating AR101 for the treatment of vascular Ehlers-Danlos Syndrome (VEDS), and for working capital and general corporate purposes.

There is no established public trading market for the pre-funded warrants or the common warrants and the Company does not expect a market to develop. Additionally, the Company does not intend to apply for the listing of the pre-funded warrants or the common warrants on any national securities exchange or other nationally recognized trading system.

Canaccord Genuity is acting as the sole bookrunner for the Offering. Roth Capital Partners served as financial advisor to the Company.

The Offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-259862) that was declared effective by the Securities and Exchange Commission (the "SEC") on October 7, 2021. The Offering will be made only by means of a prospectus supplement and accompanying prospectus describing the terms of the Offering. Copies of the prospectus supplement and the accompanying prospectus relating to this Offering may be obtained, when available, by contacting Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, Suite 1200, Boston, Massachusetts 02110, or by email at [email protected]. These documents may also be obtained for free on the SEC's website located at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the Offering. There shall not be any sale of these securities in any state or jurisdiction in which such offering, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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