Palatin Technologies (PTN) Receives $6.1M from Exercise of Warrants

Palatin Technologies, Inc. (NYSE American: PTN) today announced that it has entered into a warrant inducement agreement with an institutional investor to exercise certain outstanding warrants that the Company issued in November 2022 and October 2023 totaling 3,233,277 shares of the Company's common stock for gross proceeds of approximately $6.1 million.

Pursuant to the warrant inducement agreement, the investor has agreed to exercise November 2022 outstanding warrants to purchase an aggregate of 1,818,812 shares of the Company's common stock and has agreed to exercise October 2023 outstanding warrants to purchase an aggregate of 1,415,095 shares of the Company's common stock, both sets at an amended exercise price of $1.88 per share. In consideration for the immediate exercise of the warrants, the Company also agreed to issue the investor unregistered Series A warrants to purchase an aggregate of 2,727,273 shares of the Company's common stock, and Series B warrants to purchase an aggregate of 2,122,642 shares of the Company's common stock. The Series A and B warrants will each have an exercise price of $1.88 per share and will expire on the five-year anniversary of the closing date. The Series A warrants and 498,441 of the Series B warrants are exercisable immediately, with 1,624,201 shares of common stock underlying the Series B warrants exercisable beginning on the effective date of stockholder approval and will expire on the five-year anniversary from the date of stockholder approval.

The transaction is expected to close on or about June 24, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the exercise of warrants for working capital and general corporate purposes.

The Series A and B warrants described above are being issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Regulation D promulgated thereunder and, along with the shares of common stock underlying such warrants, have not been registered under the Securities Act, or applicable state securities laws.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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