ContraFect announces pricing of $7M registered directoffering

ContraFect Corporation entered into a securities purchase agreement with a single institutional investor to purchase approximately $7.0 million of its common stock in a registered direct offering and warrants to purchase common stock in a concurrent private placement. The combined effective purchase price for each share of common stock and associated warrants will be $0.129. nder the terms of the securities purchase agreement, ContraFect has agreed to issue 4,350,000 shares of common stock and pre-funded warrants to purchase 49,913,565 shares of common stock. In the concurrent private placement, which will be consummated concurrently with the offering, ContraFect also has agreed to issue Class A warrants to purchase up to an aggregate of 108,527,130 shares of common stock and Class B warrants to purchase up to an aggregate of 54,263,565 shares of common stock. Each of the warrants is subject to a customary beneficial ownership limitation on exercisability, and the Class A warrants and Class B warrants will not be exercisable at all until ContraFect obtains a shareholder approval of an amendment to the Company’s certificate of incorporation for either an increase in authorized shares of its common stock or a reverse split of its common stock and a shareholder approval as required under the Nasdaq rules with respect to this transaction. Each of the Class A warrants and Class B warrants will have an exercise price of $0.129 per share of common stock. The Class A Warrants will expire five years from the date on which they become exercisable. The Class B warrants will expire six months from the date on which they become exercisable. Maxim Group LLC is acting as the sole placement agent for the offering. The offering is expected to close on or about December 15, 2022, subject to the satisfaction of customary closing conditions.