Veru Inc. ends sales agreement with Jefferies LLC

Published 23/08/2024, 21:18
Veru Inc. ends sales agreement with Jefferies LLC

Veru Inc. (NASDAQ:VERU), a pharmaceutical company, has terminated its material definitive agreement with Jefferies LLC, according to a recent SEC filing. The Open Market Sales Agreement, initiated on May 12, 2023, enabled Veru to sell shares of its common stock through Jefferies, with a potential aggregate value of up to $75 million.

The termination notice was issued by Veru on August 19, 2024, and will take effect on September 3, 2024, as per the stipulations of the agreement. The company will not face any penalties for the termination and will not issue or sell any additional shares under this agreement.

Since the agreement's start, Veru has sold 1,367,415 shares, resulting in net proceeds of approximately $1.1 million for the company. The details of the now-terminated Sales Agreement were previously filed with the SEC and incorporated by reference into this latest filing.

The decision to end the sales agreement comes as the pharmaceutical industry continues to adjust to market demands and strategic financial planning. The move by Veru is a significant shift in its capital-raising strategies, as it will no longer be leveraging the Sales Agreement to issue shares.

In other recent news, Veru Inc. has announced a series of significant developments. The company recently expanded its Board of Directors and appointed Loren Mark Katzovitz as a new independent director, a decision made by the company's Nominating and Corporate Governance Committee. This expansion is part of Veru Inc.'s ongoing governance process.

The company also faced challenges in achieving the required quorum for its 2024 Annual Meeting of Shareholders, with only 49.6% of eligible shares represented. This led to a rescheduling of the meeting, providing Veru additional time to solicit proxies.

In terms of analyst ratings, Jefferies revised its price target for Veru from $1.20 to $1.00, maintaining a Hold rating, while Oppenheimer reduced its target from $7.00 to $5.00, maintaining an Outperform rating.

Additionally, Veru is conducting a Phase IIB clinical trial to evaluate enobosarm for obesity treatment, led by obesity expert Dr. Steven B. Heymsfield. The outcome of this trial could influence the drug's progress to Phase III trials and Veru's ability to secure a partnership for further development.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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