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Apr 03, 2018

Zosano Announces Closing of Public Offering of Common Stock

FREMONT, Calif., April 03, 2018 (GLOBE NEWSWIRE) -- Zosano Pharma Corporation (Nasdaq:ZSAN), a clinical-stage biopharmaceutical company focused on providing rapid systemic administration of therapeutics to patients using its proprietary ADAM technology, today announced the closing of the previously announced public offering of 10,000,000 shares of its common stock at a price of $5.00 per share.

The gross proceeds to Zosano from this offering are approximately $50.0 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Zosano. Zosano intends to use the net proceeds of the proposed offering to complete the long-term safety study of its lead product candidate, M207, and for working capital and general corporate purposes.

"The completion of this financing allows Zosano to continue executing on the timely filing of our NDA for M207, which is anticipated in the fourth quarter of 2019. Our long-term safety study has been enrolling well, as we currently have over 150 patients on study drug while manufacturing has started the production of our registration batches.  The focus of the company remains the successful development and eventual launch, if approved, of this acute treatment for migraine sufferers," commented John P. Walker, Chairman and CEO. "We are very pleased that both current and new investors participated in the offering and that we were able to increase our level of institutional ownership, which we expect will stabilize the trading in our stock. Of particular note is Aisling Capital and Steve Elms its Managing Partner.  Aisling Capital acted as a lead investor and its support allowed us to attract other new institutional investors."

BTIG, LLC acted as the book-running manager for the offering.

The offering was made by Zosano pursuant to a registration statement on Form S-1 previously filed with the Securities and Exchange Commission (the "SEC") on December 22, 2017, as amended and declared effective by the SEC on March 28, 2018. A final prospectus related to the offering has been filed with the SEC and is available on the website of the SEC at www.sec.gov. A copy of the final prospectus may be obtained from BTIG, LLC at 825 Third Avenue, 6th Floor, New York, NY, 10022.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 such state or jurisdiction.

About Zosano Pharma

Zosano Pharma Corporation is a clinical stage biopharmaceutical company focused on providing rapid systemic administration of therapeutics to patients using its proprietary Adhesive Dermally-Applied Microarray, or ADAM technology.  The Company recently announced positive results from its ZOTRIP study that evaluated M207, which is its proprietary formulation of zolmitriptan delivered via its ADAM technology, as an acute treatment for migraine.  Zosano is focused on developing products where rapid administration of established molecules with known safety and efficacy profiles provides an increased benefit to patients, for markets where patients remain underserved by existing therapies. The Company anticipates that many of its current and future development programs may enable the Company to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization. Learn more at www.zosanopharma.com.

Forward-Looking Statements

This press release includes statements about future expectations, plans and prospects for the Company, including the Company's expectations regarding the Company's anticipated proceeds from the offering and its use of those proceeds. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These risks and uncertainties include, without limitation, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering, as well as other risks and uncertainties discussed in the Risk Factors set forth in the Company's most recent annual report on Form 10-K, as amended. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot in any way guarantee that the future results, level of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. All forward-looking statements are based on information currently available to Zosano and Zosano assumes no obligation to update any such forward-looking statements.

Zosano Contact:
John P. Walker
Chief Executive Officer