Petros Pharmaceuticals, Inc. announced that it has entered into a securities purchase agreement with certain accredited investors to issue 15,000 series A convertible preferred share at an issue price of $1,000 per share for gross proceeds of $15,000,000 on July 13, 2023. The preferred share will be initially convertible into up to 6,666,668 common shares at a conversion price of $2.25 per share. The company will also issue warrants to acquire up to an aggregate of 6,666,668 common shares at an exercise price of $2.25 per share.

The company has agreed to pay Katalyst Securities LLC a cash fee equal to 8% of the gross proceeds and warrants to purchase common shares equal to 8% of the number of shares of common stock that the preferred shares are initially convertible into, with an exercise price of $2.25 per share and a five-year term. The holders of the preferred shares will be entitled to dividends of 8% per annum. The company is expected to close the transaction on July 17, 2023.

The company will issue securities pursuant to exemption provided under Regulation D.