Avenue Therapeutics, Inc. announced that it has entered into an PIPE Purchase Agreement for the PIPE Warrants at a price of $0.125 per PIPE Warrant to purchase 1,940,299 shares of common stock for the gross proceeds of $240,000 on January 27, 2023. The PIPE Warrants have an exercise price of $1.55 per share and are exercisable six months after issuance and will expire three years from the date on which the PIPE Warrants become exercisable. The PIPE Warrants contain standard anti-dilution adjustments to the exercise price including for share splits, share dividend, rights offerings and pro rata distributions.

The transaction is expected to close on January 31, 2023. Aegis was paid a commission equal to 8.0% of the gross proceeds received by the Company in the transaction. The Company also agreed to pay a non-accountable expense allowance to Aegis in an amount equal to 1% of the gross proceeds and to pay a warrant solicitation fee of 5% of the gross proceeds from any exercise of the Warrants issued in the transaction.