NEW YORK, April 8, 2014 (GLOBE NEWSWIRE) -- Ohr Pharmaceutical, Inc. (Nasdaq:OHRP), a pharmaceutical company focused on the development of novel therapeutics for large unmet medical needs, today announced that it has entered into subscription agreements with institutional and accredited investors for the sale of its common stock in a registered direct offering. The Company is selling 1.8 million shares of common stock at a price of $10.00 per share, for gross proceeds of approximately $18 million. Chardan Capital Markets, LLC acted as lead placement agent and Brean Capital, LLC acted as co-placement agent for the offering. The sale and issuance of the shares is expected to close on or about April 11, 2014.
Ohr intends to use the proceeds of the offering for general corporate purposes, including expenses for clinical trials, research and development, general and administrative, manufacturing, and potential acquisitions of complementary companies and/or technologies that complement the company's business. There are currently no understandings, agreements or commitments with respect to any potential acquisitions.
The sale and issuance of the shares is being made pursuant to a prospectus supplement dated April 8, 2014 and an accompanying prospectus dated January 31, 2014, pursuant to Ohr's effective "shelf" registration statement on Form S-3 (File No. 333-193434), which was filed with the Securities and Exchange Commission on January 17, 2014 and declared effective on January 31, 2014."We continue to execute on our strategy of developing an ophthalmology-focused pipeline with greater financial strength," said Dr. Irach Taraporewala, CEO. "This financing provides us with the necessary resources to continue our clinical development programs, and seek out additional innovative ophthalmic candidates. We expect to complete enrollment in the OHR-002 wet-AMD study and initiate two randomized, controlled investigator sponsored trials to evaluate Squalamine eye drops for the treatment of diabetic macular edema early in the current quarter. Interim data on the OHR-002 study is expected in the second calendar quarter of 2014, with final data on the study available in the first quarter of calendar 2015."