|9 Months Ended|
Sep. 30, 2021
|Subsequent Events [Abstract]|
21. Subsequent Events
On September 28, 2021, AstraZeneca notified the Company of its intention to exercise its option to purchase all of the equity of Caelum. The transaction closed on October 5, 2021. The Company received 42.4% of the distribution of proceeds from the option exercise price of $150 million, approximately $56.9 million, which is net of the 10%, 24-month escrow holdback and other miscellaneous transaction expenses. On September 30, 2021, the Company fair valued its investment in Caelum at $56.9 million, an increase of $8.4 million and $39.3 million for the three and nine months ended September 30, 2021, respectively.
Journey Initial Public Offering (the “Journey IPO”)
The Journey IPO is expected to close on November 16, 2021, subject to customary closing conditions, resulting in the issuance of 3,520,000 shares of Journey’s common stock. The shares are issued at $10.00 per share, resulting in net proceeds of approximately $31.4 million, after deducting underwriting discounts and other offering costs. In addition, Journey granted the underwriters a 30-day option to purchase up to an additional 528,000 additional shares of common stock, at the public offering price, less the underwriting discount, to cover over-allotments, if any. Journey’s common stock began trading on the Nasdaq Capital Market on November 12, 2021 under the ticker symbol “DERM.”
Avenue Underwritten Public Offering of Common Stock
On November 12, 2021, pursuant to an underwritten public offering, Avenue sold 1,946,787 shares of its common stock at a price of $1.34 per share for gross proceeds of approximately $2.6 million before deducting underwriting discounts and commissions and other estimated expenses. In addition, Avenue granted the underwriters a 45-day option to purchase additional shares of common stock, representing up to 15% of the number of total shares, solely to cover over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $3.0 million, if the over-allotment option is exercised in full.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef