Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

On December 15, 2017, we entered into securities purchase agreements with certain institutional and accredited investors for the sale by us of an aggregate of 1,280,360 shares of our common stock at a purchase price of $4.6925 per share. Concurrently with the sale of the shares, to the securities purchase agreements, we also sold to the investors in a private placement warrants to purchase up to an aggregate of 640,180 shares of our common stock. The aggregate gross proceeds for the sale of the shares and warrants will be approximately $6.0 million. Subject to certain ownership limitations, the warrants are exercisable immediately upon issuance at an exercise price equal to $4.63 per share of common stock, subject to adjustments as provided under the terms of the warrants. The warrants are exercisable for five and a half years from the issuance date. We expect the closing of the sales of these securities to occur on or about December 19, 2017.

The net proceeds to us from the transactions, after deducting placement agent fees and expenses and the estimated offering expenses, are expected to be approximately $5.45 million, excluding the proceeds, if any, from the exercise of the warrants. We intend to use the net proceeds from the offering for general corporate purposes, including our Phase 3 clinical Mino-Lok trial for the treatment of catheter related bloodstream infections and our Phase 2b trial of Hydrocortisone-Lidocaine cream for the treatment of hemorrhoids, and working capital and capital expenditures.

The common shares (but not the warrants or shares issuable upon exercise of the warrants) were offered and sold by us to an effective “shelf” registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on November 9, 2017 and subsequently declared effective on December 15, 2017 (File No. 333-221492). We have filed a prospectus supplement and the accompanying prospectus in connection with the sale of the shares of common stock.

The warrants and the shares issuable upon exercise of the warrants are being sold and issued without registration under the Securities Act of 1933 (the “Securities Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors, and in reliance on similar exemptions under applicable state laws.

We also entered into an engagement letter with H.C. Wainwright & Co., LLC, or Wainwright, dated November 10, 2017, to which Wainwright agreed to serve as exclusive placement agent for the issuance and sale of the common shares and warrants. We have agreed to pay Wainwright an aggregate fee equal to 7% of the gross proceeds received by us from the sale of the securities in the transactions. to the engagement letter, we also agreed to issue to Wainwright or its designees warrants to purchase up to 7% of the aggregate number of shares sold in the transactions. The placement agent warrants have substantially the same terms as the investor warrants, except that the exercise price of the Wainwright warrants is $5.8656 per share and the term of the placement agent warrants is five years. The placement agent warrants and the shares issuable upon exercise of the placement agent warrants will be issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and in reliance on similar exemptions under applicable state laws. We will also reimburse Wainwright for non-accountable expenses of $35,000 and legal fees and other out-of-pocket expenses of $50,000. The engagement letter has indemnity and other customary provisions for transactions of this nature.

The forms of the purchase agreement, the investor warrant and the placement agent warrant, as well as the engagement letter are filed as Exhibits 10.1, 4.1, 4.2 and 10.2, respectively, to this Current Report on Form 8-K. The foregoing descriptions of the purchase agreement, the investor warrant, the placement agent warrant and the engagement letter are not complete and are qualified in their entirety by reference to Exhibits 10.1, 4.1, 4.2 and 10.2, respectively.

The information contained above in Item 1.01 of this Report related to the investor warrants and the placement agent warrants is incorporated herein by reference.

On December 18, 2017, we issued a press release regarding the transactions described above under Item 1.01 of this Current Report on Form 8-K. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

(d)Exhibits.

Citius Pharmaceuticals, Inc. Exhibit
EX-4.1 2 f8k1217ex4-1_citiuspharma.htm FORM OF INVESTOR WARRANT Exhibit 4.1   NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,…
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About Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR)

Citius Pharmaceuticals, Inc., formerly Trail One, Inc., is a pharmaceutical company engaged in developing and commercializing therapeutic products. The Company focuses on developing formulations to manage the delivery and compliance of approved drugs. The Company offers Suprenza, an orally disintegrating tablet and an obesity drug that can be administered with water or dissolved on tongue. The Company also focuses on development of its product candidate, Hydrocortisone-Lidocaine Cream, which is in Phase II study. Its Hydrocortisone-Lidocaine Cream is used to provide anti-inflammatory and anesthetic relief to persons suffering from grade I and II hemorrhoids. Citius Pharmaceuticals, LLC is its subsidiary. The Company has not generated any revenues.