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Aytu BioScience Announces Pricing of $13.2 Million Underwritten Public Offering

October 5, 2018

ENGLEWOOD, CO / ACCESSWIRE / October 5, 2018 / Aytu BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs, today announced the pricing of an

ENGLEWOOD, CO / ACCESSWIRE / October 5, 2018 / Aytu BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs, today announced the pricing of an underwritten public offering with expected total gross proceeds of $13.2 million, before deducting underwriting discounts, commissions and other offering expenses payable by the Company. The closing of the offering is expected to take place on or about October 9, 2018, subject to the satisfaction or waiver of customary closing conditions.

The securities offered by the Company consist of (i) an aggregate of 457,007 shares of its Common Stock, (ii) an aggregate of 8,342,993 shares of its Series C Convertible Preferred Stock convertible into an aggregate of 8,342,993 shares of Common Stock at a conversion price of $1.50 per share, and (iii) Warrants to purchase an aggregate of 8,800,000 shares of Common Stock at an exercise price of $1.50 per share. The securities will be issued at a public offering purchase price of $1.50 per fixed combination of (a) one share of Common Stock and one Warrant or (b) one share of Series C Preferred Stock and one Warrant. Each share of Series C Preferred Stock is convertible into one share of Common Stock. The Warrants will be exercisable upon issuance and will expire five years from the date of issuance. The conversion price of the Series C Preferred Stock in the offering as well as the exercise price of the Warrants are fixed and do not contain any variable pricing features or any price based anti-dilutive features.

In addition, the Company has granted the underwriters a 45-day option to purchase up to 1,320,000 additional shares of Common Stock and/or additional Warrants to purchase up to 1,320,000 shares of Common Stock at the public offering price per share and per Warrant, less the underwriting discounts and commissions.

The Company intends to use the net proceeds from the offering for general corporate purposes, including working capital to support commercial activities primarily related to Natesto and ZolpiMist and to complete clinical studies around our MiOXSYS System.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS) is acting as sole book-running manager for the offering and Northland Capital Markets is acting as co-manager for the offering.

The securities were offered pursuant to a registration statement on Form S-1 (File No. 333-227243), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on October 4, 2018 and an additional registration statement filed pursuant to Rule 462(b) (File No. 333-227706), which became effective when filed. The offering is being made only by means of a prospectus. A final prospectus relating to this offering will be filed with the SEC. A copy of the prospectus may be obtained from: Ladenburg Thalmann & Co. Inc., 277 Park Avenue, 26th Floor, New York, NY 10172, Telephone: (212) 409-2000, or by emailing . Investors may also obtain these documents at no cost by visiting the SEC’s website at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs. The company currently markets Natesto®, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or “Low T”). Additionally, Aytu is developing MiOXSYS®, a novel, rapid semen analysis system with the potential to become a standard of care for the diagnosis and management of male infertility caused by oxidative stress. MiOXSYS is commercialized outside of the U.S. where it is a CE Marked, Health Canada cleared, Australian TGA approved, Mexican COFEPRAS approved product, and Aytu is planning U.S.-based clinical trials in pursuit of 510k de novo medical device clearance by the FDA. Aytu recently acquired exclusive U.S. and Canadian rights to ZolpiMist™, an FDA-approved, commercial-stage prescription sleep aid indicated for the short-term treatment of insomnia characterized by difficulties with sleep initiation. Aytu’s strategy is to continue building its portfolio of revenue-generating products, leveraging its focused commercial team and expertise to build leading brands within large, growing markets. For more information visit aytubio.com.

Forward-Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to Aytu BioScience, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the company and are subject to a number of risks, uncertainties, and other factors that could cause the company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement and our SEC filings. Please see the risks and uncertainties detailed in the “Forward-Looking Statements” and “Risk Factors” sections of our Annual Report on Form 10-K for the year ended June 30, 2018, and in other documents and reports we file from time to time with the SEC.

For Investors & Media:

James Carbonara

Hayden IR

(646) 755-7412

SOURCE: Aytu BioScience, Inc.

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