Innovus Pharmaceuticals Completes $3.17 Million Private Placement to Fund Market Expansion

On January 2, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media that Innovus Pharmaceuticals (hereinafter referred to as “Innovus Pharma” or the “Company”) announced it had entered into a definitive agreement with healthcare-focused institutional investors. Under this private equity transaction, the investors may purchase up to 45,306,347 shares of Series A Common Stock at $0.07 per share, and up to 45,306,347 shares of Series B Common Stock at the same price, with associated warrants generating total proceeds of approximately $3.17 million. The transaction is expected to close on or around January 3, 2019, subject to customary closing conditions.

The net proceeds from this offering are expected to be approximately $2.765 million. Innovus Pharma intends to use the net proceeds for working capital and general corporate purposes. Innovus Pharma has agreed to file a resale registration statement with respect to the common shares and ordinary shares underlying the issued warrants within 30 days, in accordance with the equity registration agreement.

Innovus Pharma is an emerging over-the-counter (OTC) pharmaceutical sales and specialty pharmaceutical company headquartered in San Diego, California, USA. The company is dedicated to acquiring technology licenses, developing and manufacturing safe, effective, and novel OTC medicines, and commercializing consumer healthcare products aimed at improving the health and vitality of men and women, as well as treating respiratory diseases.

Innovus Pharm primarily focuses on nine major therapeutic areas: brain health, men’s health, women’s health, fertility, pain management, respiratory care, vision care, vitality, and diabetes. Its pharmaceutical products are clearly categorized by therapeutic area, with detailed information for each category available on its official website (https://innovuspharma.com/).

According to Innovus Pharma, it primarily provides health solutions through the following three approaches:

I. Direct-to-consumer offline sales through over-the-counter (OTC) drugs and health products;

2. Provide medication guidance to consumers through business partners such as primary care physicians, urologists, gynecologists, and therapists;

III. Selling pharmaceuticals directly to consumers, retailers, and wholesalers through the company’s online sales channels.

Innovus Pharma is a leader in the development and marketing of new over-the-counter (OTC) medications and Abbreviated New Drug Application (ANDA) products. Currently, Innovus Pharma is actively pursuing and continuously exploring opportunities to transition its existing prescription drugs (Rx) to OTC status. This strategy not only effectively boosts sales volume and further expands market share but also enhances brand influence, thereby facilitating the company’s future growth.

Over-the-counter (OTC) drugs refer to medications that can be purchased without a prescription from a physician or other healthcare professionals, following regulations or approvals by national health administrative authorities, with the aim of facilitating public access to medication while ensuring safety. Generally, members of the public can use these drugs on their own judgment in accordance with the drug labels and instructions. In the United States, such drugs are also known as over-the-counter drugs, abbreviated as OTC drugs. In short, they can be selected and purchased according to individual needs.

ANDA stands for Abbreviated New Drug Application, which includes data submitted to the FDA for review and approval of generic drug products. Once approved, the applicant may manufacture and market the generic drug product, providing a safe, effective, and low-cost alternative to the referenced brand-name drug.