PLx Pharma’s largest shareholder, Park West Asset Management LLC, has purchased 15,000 shares of newly issued Series A Preferred Stock, for $15 million.
PLx Pharma said in its press release on Thursday that it plans to use the newly chipped in money mainly to get Vazalore, an FDA-approved aspirin aimed for high-risk cardiovascular and stroke patients, closer to market, besides other regular needs.
As it said in the statement, it expects the Preferred Stock transaction to close in the first quarter of 2019.
PLx Pharma noted that the preferred stock holders will be entitled to an initial yearly dividend rate of 8.0%, which will stop accruing on the date of the FDA approval of the supplemental New Drug Application (sNDA) of Vazalore.
Natasha Giordano, President and Chief Executive Officer of PLx Pharma, said: “If approved, Vazalore will be the first-ever FDA-approved liquid-filled aspirin capsule with the potential to become the new standard of care aspirin for physicians treating patients at risk of having a cardiovascular or cerebrovascular event.”
She said that this investment is particularly important as it significantly strengthens the company’s balance sheet and will provide the required capital to move the Vazalore sNDA submission to the U.S. Food and Drug Administration expected in the end of 2019.
Under the terms of the stock purchase agreement, Park West will be entitled to elect one director to the company’s Board of Directors. PLx will grant Park West registration rights with respect to the common stock underlying the preferred stock, it said in its announcement.