Lipella Pharmaceuticals Enters into Placement Agent and Consulting Agreements

On December 5, 2024, Lipella Pharmaceuticals Inc. (NASDAQ: LIPO) finalized significant agreements that will impact its financial landscape. The company entered into a Placement Agent Agreement with Spartan Capital Securities, LLC, and a Consulting and Advisory Agreement, both amended by an additional agreement, on December 10, 2024.

The Placement Agent Agreement outlines that Spartan Capital Securities, LLC, will act as the exclusive placement agent for a private offering of up to $6,000,000 of Series B non-voting convertible preferred stock of Lipella Pharmaceuticals. This offering provides investors with the opportunity to convert each share into a specified number of common stock shares. Additionally, investors are granted the right to purchase an additional $6,000,000 of shares at the same terms within six months following the registration statement’s effective date. The Placement Agent also has the option to increase the offering amount by up to twenty percent to cover over-allotments.

In terms of compensation, Lipella Pharmaceuticals will pay the Placement Agent a placement fee equal to ten percent of the proceeds from each sale. The company will also grant Placement Agent Warrants equal to ten percent of the common stock shares upon conversion of the sold shares. The warrants are exercisable over a five-year period, with an exercise price of $1.00 per share.

The Consulting and Advisory Agreement with Spartan Capital Securities provides Lipella Pharmaceuticals with advisory services related to corporate matters over an eighteen-month period. As part of the compensation for these services, Lipella Pharmaceuticals will pay Spartan $300,000 in cash and issue 700,000 shares of a new class of Series C Preferred Stock. The Series C Preferred Stock will be issued at each closing based on the proceeds received by the company. Additionally, in connection with the Mirror Offering, Lipella Pharmaceuticals will pay Spartan a cash fee of $200,000 and issue 350,000 shares of Series C Preferred Stock.

The agreements contain customary representations and warranties typical for such transactions. For further details on the Placement Agent Agreement, Consulting Agreement, and Amendment, interested parties can refer to Exhibits filed with the Securities and Exchange Commission.

The entry into these agreements marks a strategic move for Lipella Pharmaceuticals, as it seeks to strengthen its financial position and explore investment opportunities in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lipella Pharmaceuticals’s 8K filing here.

Lipella Pharmaceuticals Company Profile

Lipella Pharmaceuticals Inc, a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD).