Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Stockholders Equity Note [Abstract]

Stockholders' Equity

7. Stockholders’ Equity

On January 4, 2017, we entered into an Equity Distribution Agreement, or the ATM, with Citigroup Global Markets, Inc., or the Sales Agent, under which we may offer and sell common stock having an aggregate offering price of up to $50.0 million from time to time though our Sales Agent. We will pay the Sales Agent a commission of up to 3% of the gross proceeds. We have also agreed to reimburse the Sales Agent for certain specified expenses not to exceed $50,000. Sales of the shares under the ATM were made in transactions that are deemed to be “at-the-market” equity offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions, including on the NASDAQ Stock Market. During the first quarter of 2017, we sold 4,264,970 shares of our common stock at an average market price of $1.51 per share under the ATM for aggregate gross proceeds of approximately $6.4 million before deducting commissions and expenses, of which $0.9 million was not received until April 2017.

Subsequent to March 31, 2017, we sold an additional 625,262 shares of our common stock at an average market price of $1.46 per share under the ATM, for aggregate gross proceeds of $0.9 million before deducting commissions and expenses.

On April 17, 2017, we entered into an underwriting agreement with Citigroup Global Markets Inc. and Leerink Partners LLC, for the sale of 60,000,000 shares of our common stock at the public offering price of $1.15 per share, less underwriter discounts and commissions of 6% of the per share offering price. The agreement also allowed for the purchase of up to an additional 9,000,000 shares at the option of the underwriters, which has been exercised. On April 21, 2017, we completed the sale of an aggregate of 69,000,000 shares of our common stock under the underwritten public offering. Net proceeds from the offering were approximately $74.6 million after deducting underwriting discounts and commissions, and offering expenses payable by us.We intend to use the net proceeds from this offering for the clinical and preclinical development of drug candidates, for general corporate purposes, including working capital and costs associated with manufacturing services, and for capital expenditures.