424B3 1 azrx424b3.htm PROSPECTUS SUPPLEMENT Blueprint
 
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-219385
 
PROSPECTUS SUPPLEMENT NO. 1
Dated January 19, 2018
(To Prospectus dated August 14, 2017)
 
 
 
5,905,535 Shares
 
Common Stock
 
 
This prospectus supplement (“Supplement”) modifies, supersedes and supplements certain information contained in, and should be read in conjunction with, that certain prospectus, dated August 14, 2017 (the “Prospectus”) related to the resale of shares of our common stock by the stockholders of AzurRx BioPharma, Inc. (the “Company”) identified therein as “selling stockholders”. This Supplement is not complete without, and may not be delivered or used except in connection with, the Prospectus.
 
The information contained in this Supplement modifies and supersedes, in part, the information in the Prospectus. Any information that is modified or superseded in the Prospectus shall not be deemed to constitute a part of the Prospectus, except as modified or superseded by this Supplement.
 
We may amend or supplement the Prospectus from time to time by filing amendments or supplements as required. You should read the entire Prospectus and any amendments or supplements, including this Supplement, carefully before you make an investment decision.
 
Our common stock is listed on the NASDAQ Capital Market under the ticker symbol “AZRX.” The last reported sale price per share of our common stock on January 19, 2018 was $3.46 per share.
 
Investing in our common stock involves a high degree of risk. You are urged to read the section entitled “Risk Factors” beginning on page 4 of the Prospectus and in the documents incorporated by reference therein and herein, which describes specific risks and other information that should be considered before you make an investment decision. 
 
FORWARD-LOOKING STATEMENTS
 
You should carefully consider the risk factors set forth in the Prospectus, as well as the other information contained in this Supplement and the Prospectus. The Prospectus contains forward-looking statements regarding events, conditions, and financial trends that may affect our plan of operation, business strategy, operating results, and financial position. You are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially from those included within the forward-looking statements as a result of various factors. Cautionary statements in the “Risk Factors” section of the Prospectus identify important risks and uncertainties affecting our future, which could cause actual results to differ materially from the forward-looking statements made or included in this Supplement and the Prospectus.
 
 
 
 
 
SELLING STOCKHOLDERS
 
The following table amends and restates the table appearing under the heading “Selling Stockholders” beginning on page 9 of the Prospectus, in order to update the selling stockholder information to reflect the distribution of securities previously allocated to Alexander Capital, LP in the Prospectus, as well as correcting the number of warrants held by certain selling stockholders.
 
The shares of common stock held by the selling stockholders listed in the table below were included in the 5,905,535 shares of common stock registered for resale under the registration statement of which the Prospectus forms a part. The percentages in the following table are based on 11,614,146 shares of our common stock outstanding as of December 30, 2017.
 
   
 
Maximum Number of Shares Being Offered
Pursuant to this Prospectus 
 
   
 
 
 
Name of Selling
 
Shares
Beneficially
Owned
Prior to
 
 
Common
 
 
Warrants
Currently
 
 
Warrants
Exercisable
on a Later
 
 
Debenture
Conversion 
 
  Shares
Beneficially
Owned After
Offering (1)
Securityholder
 
Offering
 
 
Stock
 
 
 Exercisable
 
 
Date
 
 
 Shares
 
  Number
 
Percent*
 
2010 Jennings Family Revocable Trust
  21,491 
  - 
  21,491 
  - 
  - 
  - 
 
 
 
  ** 
ADEC Private Equity Investments, LLC
  1,621,289 
  - 
  644,741 
  - 
  - 
  976,548 
  (2)
  8.0%
Alexander Capital, LP
  50,000 
  - 
  50,000 
  - 
  - 
  - 
  (3)
  ** 
Amory Ross
  157,143 
  78,571 
  78,572 
  - 
  - 
  - 
    
  ** 
Andrea Ross
  57,146 
  28,573 
  28,573 
  - 
  - 
  - 
    
  ** 
Andrew Sanford
  16,000 
  8,000 
  8,000 
  - 
  - 
  - 
    
  ** 
Bari Latterman
  912 
  - 
  912 
  - 
  - 
  - 
  (4)
  ** 
Brian Herman
  10,600 
  - 
  10,600 
  - 
  - 
  - 
  (5)
  ** 
Brian Thebault
  171,429 
  85,714 
  85,715 
  - 
  - 
  - 
    
  ** 
Bruce Conway
  402,258 
  185,000 
  217,258
  - 
  - 
  - 
    
  ** 
Bryan McShaine
  42,983 
  - 
  42,983 
  - 
  - 
  - 
    
  ** 
BTR Partners
  285,714 
  142,857 
  142,857 
  - 
  - 
  - 
  (6)
  ** 
Catherine and Raymond Marzulli
  9,120 
  - 
  9,120 
  - 
  - 
  - 
    
  ** 
CEDA Investments, LLC
  57,144 
  28,572 
  28,572 
  - 
  - 
  - 
  (2)
  ** 
Charlotte Ross
  57,144 
  28,572 
  28,572 
  - 
  - 
  - 
    
  ** 
Christopher Carlin
  39,657 
  - 
  39,657 
  - 
  - 
  - 
  (7)
  ** 
Christopher Laffey
  70,889 
  5,569 
  65,320 
  - 
  - 
  - 
  (7)
  ** 
Cross River Partners LP
  142,857 
  71,429 
  71,428 
  - 
  - 
  - 
  (8)
  ** 
Dana Ross
  57,144 
  28,572 
  28,572 
  - 
  - 
  - 
    
  ** 
Daniel and Agatha Tis
  17,531 
  - 
  17,531 
  - 
  - 
  - 
    
  ** 
Daniel and Beth Erlanger
  27,360 
  - 
  27,360 
  - 
  - 
  - 
    
  ** 
Daniel Erlanger
  37,114 
  - 
  37,114 
  - 
  - 
  - 
    
  ** 
David Graham
  28,571 
  14,286 
  14,285 
  - 
  - 
  - 
    
  ** 
David Ide
  42,983 
  - 
  42,983 
  - 
  - 
  - 
    
  ** 
David Miedzygorski
  2,150 
  - 
  2,150 
  - 
  - 
  - 
    
  ** 
Davis Family Trust
  533,689 
  - 
  138,560 
  - 
  - 
  395,129 
  (9)
  3.4%
Deborah L. Millar Revocable Trust
  26,865 
  - 
  26,865 
  - 
  - 
  - 
  (10)
  ** 
Doug Aguililla
  4,000 
  - 
  4,000 
  - 
  - 
  - 
  (11)
  ** 
EBR Ventures, LLC
  700,000 
  100,000 
  100,000 
  - 
  - 
  500,000 
  (2)
  4.3%
Edward Borkowski
  252,357 
  - 
  50,794 
  - 
  - 
  201,563 
  (12)
  1.7%
Edward Borkowski and Nancy McCormick
  65,243 
  - 
  13,680 
  - 
  - 
  51,563 
  (12)
  ** 
Edwin W. Laffey
  6,000 
  3,000 
  3,000 
  - 
  - 
  - 
    
  ** 
Eugene Markowitz
  13,149 
  - 
  13,149 
  - 
  - 
  - 
    
  ** 
Fred Tedori
  23,256 
  - 
  23,256 
  - 
  - 
  - 
    
  ** 
Gene Humphreys
  8,380 
  - 
  3,224 
  - 
  - 
  5,156 
    
  ** 
Glenn Harnish and Jean Harnish JTWROS
  14,000 
  7,000 
  7,000 
  - 
  - 
  - 
    
  ** 
Gene and Catherine Salkind
  222,066 
  - 
  83,275 
  - 
  - 
  138,791 
    
  1.2%
Gregory L. Sheldon and Madeline M. Sheldon
  13,680 
  - 
  13,680 
  - 
  - 
  - 
    
  ** 
Gregory L. Sheldon
  18,557 
  - 
  18,557 
  - 
  - 
  - 
    
  ** 
Hammermeister Revocable Family Trust
  83,800 
  - 
  32,237 
  - 
  - 
  51,563 
  (13)
  ** 
Hans Tommy Wilhelmsen
  4,299 
  - 
  4,299 
  - 
  - 
  - 
    
  ** 
Harbor Watch Partners, LP
  185,714 
  92,857 
  92,857 
  - 
  - 
  - 
  (14)
  ** 
 
 
 
 
Ike McEntire
  10,745 
  - 
  10,745 
  - 
  - 
  - 
 
 
 
  ** 
JABCO LP
  133,797 
  57,143 
  76,654 
  - 
  - 
  - 
  (15)
  ** 
Jody Thompson
  4,489 
  - 
  4,489 
  - 
  - 
  - 
  (16)
  ** 
John Columbia
  2,703 
  - 
  2,703 
  - 
  - 
  - 
  (17)
  ** 
Jonathan Gazdak
  26,447 
  - 
  26,447 
  - 
  - 
  - 
  (18)
  ** 
Joseph Amato
  16,768 
  - 
  16,768 
  - 
  - 
  - 
  (19)
  ** 
Joseph Arvay
  28,571 
  14,286 
  14,285 
  - 
  - 
  - 
    
  ** 
Joseph Kerrissey
  14,286 
  7,143 
  7,143 
  - 
  - 
  - 
    
  ** 
Joseph M. Ahearn
  55,491 
  - 
  21,491 
  - 
  - 
  34,000 
    
  ** 
Joseph M. and Pamela Longo
  57,143 
  28,571 
  28,572 
  - 
  - 
  - 
    
  ** 
Kathryn M. Parsons Revocable Trust
  65,909 
  28,571 
  37,338 
  - 
  - 
  - 
  (20)
  ** 
KC Scott Family Limited Partnership
  50,000 
  25,000 
  25,000 
  - 
  - 
  - 
  (21)
  ** 
Lee Becker
  37,143 
  18,571 
  18,572 
  - 
  - 
  - 
    
  ** 
Lincoln Park Capital Fund, LLC
  617,769 
  - 
  164,256 
  164,256 
  289,257 
  - 
  (22)
  ** 
Lucy Shurtleff
  33,602 
  11,429 
  22,173 
  - 
  - 
  - 
    
  ** 
Mario Wagner Okuno
  6,447 
  - 
  6,447 
  - 
  - 
  - 
    
  ** 
Mark and Phyllis Waxman
  17,531 
  - 
  17,531 
  - 
  - 
  - 
    
  ** 
Michael Slobodow
  5,373 
  - 
  5,373 
  - 
  - 
  - 
    
  ** 
Molly Hsu
  70,127 
  - 
  70,127 
  - 
  - 
  - 
    
  ** 
Netgain Financial, Inc.
  60,000 
  10,000 
  50,000 
  - 
  - 
  - 
  (23)
  ** 
Network 1 Financial Services, Inc.
  10,131 
  - 
  10,131 
  - 
  - 
  - 
  (24)
  ** 
Olivia Lutz Trust 2014
  114,286 
  57,143 
  57,143 
  - 
  - 
  - 
  (25)
  ** 
Peter Cella
  10,745 
  - 
  10,745 
  - 
  - 
  - 
    
  ** 
PRK Partners, LP
  200,000 
  100,000 
  100,000 
  - 
  - 
  - 
  (26)
  ** 
Ralph Worthington
  43,776 
  - 
  43,776 
  - 
  - 
  - 
    
  ** 
Renee Markowitz
  21,914 
  - 
  21,914 
  - 
  - 
  - 
    
  ** 
Rocco Guidicipietro
  16,859 
  - 
  16,859 
  - 
  - 
  - 
  (27)
  ** 
Ross Bevevino
  12,509 
  - 
  12,509 
  - 
  - 
  - 
  (28)
  ** 
Russell W. Rice
  5,373 
  - 
  5,373 
  - 
  - 
  - 
    
  ** 
S. Clarke Moody
  149,349 
  57,143 
  92,206 
  - 
  - 
  - 
 
 
 
  ** 
Shane Cobb
  47,611 
  - 
  6,136 
  - 
  - 
  41,475 
 
 
 
  ** 
Sierra AF 2013 Trust
  72,237 
  - 
  32,237 
  - 
  - 
  40,000 
  (29)
  ** 
Stephen Walsh
  2,280 
  - 
  2,280 
  - 
  - 
  - 
  (30)
  ** 
Steven Montal
  216,371 
  - 
  32,659 
  - 
  - 
  183,712 
    
  1.6%
The Burke E Ross Jr. GST Investment Trust 2014
  430,000 
  215,000 
  215,000 
  - 
  - 
  - 
  (2)
  ** 
Trident Partners, LTD.
  804 
  - 
  804 
  - 
  - 
  - 
  (31)
  ** 
ViewTrade Securities, Inc.
  3,650 
  - 
  3,650 
  - 
  - 
  - 
  (32)
  ** 
WallachBeth Capital, LLC
  18,815 
  - 
  18,815 
  - 
  - 
  - 
  (33)
  ** 
William Curtis
  28,571 
  14,286 
  14,285 
  - 
  - 
  - 
    
  ** 
William S. Goodman
  53,729 
  - 
  53,729 
  - 
  - 
  - 
    
  ** 
World Wide Holdings, LLC
  150,000 
  - 
  150,000 
  - 
  - 
  - 
  (34)
  ** 
 
*
Assumes that the selling stockholders will sell all of the shares of common stock saleable pursuant to this prospectus, including the shares of common stock that may be issued upon the exercise of all warrants identified herein. Also assumes for each selling stockholder, to the extent applicable, that (a) all were exercised, (b) only such selling stockholder’s warrants were exercised and (c) as a consequence, the number of issued and outstanding shares has increased by the number of such selling stockholder’s warrant shares.  The registration of these shares does not necessarily mean that the selling stockholders will sell all or any portion of the shares covered by this prospectus.
 
**
Less than 1%.
 
 
 
 
(1)
Information concerning other Selling Stockholders will be set forth in one or more amendments to the registration statement, of which this prospectus forms a part, and/or prospectus supplements from time to time, as required.
 
(2)
As manager of each of CEDA Investments, LLC, The Burke E. Ross Jr. GST Investment Trust 2014, EBR Ventures, LLC, and ADEC Private Equity Investments, Edmond Burke Ross, Jr. holds sole voting and dispositive power over the shares held by each entity. 28,572 shares of common stock and warrants to purchase 28,572 shares ofcommon stock are held by CEDA Investments, LLC, 215,000 shares of common stock and warrants to purchase 215,000 shares of common stock are held by The Burke E Ross Jr. GST Investment Trust 2014, 100,000 shares of common stock and warrants to purchase 100,000 shares of common stock are held by EBR Ventures, LLC, and warrants to purchase 699,461 shares of common stock are held by ADEC Private Equity Investments.
 
(3)
As Managing Director of Alexander Capital, LP (“Alexander Capital”), Jonathan Gazdak holds voting and dispositive power over the shares held by such entity. Alexander Capital is a broker-dealer and has advised the Company that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(4)
Ms. Latterman has advised the Company that she is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(5)
Mr. Herman has advised the Company that he is affiliated with ViewTrade Securities (defined below), a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(6)
As General Partner of BTR Partners, Benson T. Ross holds sole voting and dispositive power over the shares held by such entity.
 
(7)
Mr. Carlin has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(7)
Mr. Laffey has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(8)
The reported securities are directly owned by Cross River Partners LP (the "Partnership"), a limited partnership whose general partner is Cross River Capital Management LLC (the "General Partner"), and may be deemed indirectly beneficially owned by the General Partner and by Cross River Management LLC, as the investment manager of the Partnership (the "Investment Manager"). The reported securities may also be deemed indirectly beneficially owned by Richard Murphy, as Managing Member of both the General Partner and the Investment Manager.
 
(9)
As Trustee of Davis Family Trust, Gary B. Davis holds sole voting and dispositive power over the shares held by such entity.
 
(10)
As Trustee of Deborah L. Millar Revocable Trust, Deborah L. Millar holds sole voting and dispositive power over the shares held by such entity.
 
(11)
Mr. Aguililla has advised the Company that he is affiliated with ViewTrade Securities (defined below), a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
  
(12)
Edward Borkowski is a member of the Company’s Board of Directors and currently serves as Chairman of the Board.
 
(13)
As Trustee of Hammermeister Revocable Family Trust, James Hammermeister holds sole voting and dispositive power over the shares held by such entity.
 
(14)
As General Partner of Harbor Watch Partners, LP, Amory Ross holds sole voting and dispositive power over the shares held by such entity.
 
(15)
As General Partner of JABCO LP, J. Geddes Parsons holds sole voting and dispositive power over the shares held by such entity.
 
(16)
Ms. Thompson has advised the Company that she is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(17)
Mr. Columbia has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(18)
Mr. Gazdak has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(19)
Mr. Amato has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
 
 
 
(20)
As Trustee of Kathryn M. Parsons Rev. Trust, Kathryn M. Parsons holds sole voting and dispositive power over the shares held by such entity.
 
(21)
As Partner of the KC Scott Family Limited Partnership, Shane A. Scott holds sole voting and dispositive power over the shares held by such entity.
 
(22)
Josh Scheinfeld and Jonathan Cope, the principals of Lincoln Park, may be deemed to be beneficial owners of all of the shares of common stock owned by Lincoln Park subject to a 4.99% ownership blocker contained within certain securities held by Lincoln Park. Messrs. Scheinfeld and Cope have shared voting and dispositive power over the shares being offered.
 
(23)
As Chief Executive Officer of Netgain Financial, Inc., Brian O. Quinn holds sole voting and dispositive power over the shares held by such entity.
 
(24)
As Chief Executive Officer of Network 1 Financial Securities, Inc. ("Network 1"), Richard Hunt holds voting and dispositive power over the shares held by such entity. Network 1 is a broker-dealer and has advised the Company that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(25)
As full Trustee of the Olivia Lutz Trust 2014, Peter C. Lacaillade holds sole voting and dispositive power over the shares held by such entity. The principal business address of the Olivia Lutz Insurance Trust 2014 is c/o ADEC Private Equity Investments LLC, 172 S. Ocean Blvd., Palm Beach, FL 33480.
 
(26)
As a principal of PRK Partners, LP, Parthenia Ross Kiersted holds sole voting and dispositive power over the shares held by such entity.
 
(27)
Mr. Guidicipietro has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(28)
Mr. Bevevino has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(29)
As Trustee of the Sierra AF 2013 Trust, Robert Goldman, Esq. holds voting and dispositive power over the shares held by such entity.
 
(30)
Mr. Walsh has advised the Company that he is affiliated with Alexander Capital, a broker-dealer, and that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(31)
As President of Trident Partners, LTD (“Trident Partners”), Brian Schante holds voting and dispositive power over the shares held by such entity. Trident Partners is a broker-dealer and has advised the Company that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(32)
As President of ViewTrade Securities, Inc. (“ViewTrade Securities”), James St. Clair holds voting and dispositive power over the shares held by such entity. ViewTrade Securities is a broker-dealer and has advised the Company that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(33)
Michael Wallach, Chief Executive Officer, and David Beth, President and Chief Operating Officer, of WallachBeth Capital, LLC (“WallachBeth”), each hold voting and dispositive power over the shares held by such entity. WallachBeth is a broker-dealer and has advised the Company that the securities were received solely as an investment and not with a view to or for resale or distribution.
 
(34)
As World Wide Holdings, LLC is the parent Company for Invictus Resources, and as Managing Partner of Invictus Resources, Jeffrey Auerbach holds sole voting and dispositive power over the shares held by such entity.
 
 
 
 
 
REPRICING OF CERTAIN WARRANTS
 
Beginning on December 31, 2017, the Company entered into warrant exercise agreements with the following selling stockholders (“Holders”) that purchased or were otherwise issued to the Holders between October 2014 and June 2017, the Holders agreed to exercise certain warrants (the “Reprice Warrants”) for cash in exchange for the Company reducing the current exercise price of the Reprice Warrants to $2.50 per share and amending any unexercised, remaining warrants to reduce the exercise price to $3.25 per share (the “Remaining Warrants”).
 
The following Holders have executed warrant exercise agreements with the Company, have exercised the Repricing Warrants listed below for $2.50 per share and have received amended Remaining Warrants that are each exercisable for $3.25 per share:
 
Holder
 
No. of Repricing
Warrants
 
 
No of Remaining
Warrants
 
2010 Jennings Family Revocable Trust
  21,491 
  - 
Brian Herman
  10,600 
  - 
Brian Thebault
  42,857 
  42,858 
Bruce Conway
  200,000 
  17,258 
Bryan McShaine
  21,428 
  21,555 
Christopher Laffey
  32,660 
  32,660 
Daniel Erlanger
  64,474 
  - 
Daniel and Agatha Tis
  17,310 
  221 
David Graham
  7,150 
  7,135 
Davis Family Trust
  69,280 
  69,280 
Deborah L. Millar Revocable Trust
  26,865 
  - 
Douglas Aguililla
  4,000 
  - 
Edward Borkowski
  22,320 
  28,474 
Edward Borkowski and Nancy McCormick
  13,680 
  - 
Gregory L. Sheldon and Madeline M. Sheldon
  13,680 
  - 
Gregory L. Sheldon
  18,557 
  - 
Hammermeister Revocable Family Trust
  16,119 
  16,119 
JABCO LP
  38,500 
  38,154 
Sierra AF 2013 Trust
  32,237 
  - 
Jonathan Gazdak
  26,447 
  - 
Joseph M. Ahearn
  10,746 
  10,746 
Kathryn M. Parsons Revocable Trust
  19,000 
  18,338 
KC Scott Family Limited Partnership
  12,500 
  12,500 
Lee Becker
  18,572 
  - 
Ralph Worthington
  25,000 
  18,776 
Ross Bevevino
  6,255 
  6,255 
S. Clarke Moody
  46,103 
  46,103 
ViewTrade Securities, Inc.
  3,650 
  - 
William S. Goodman
  53,729 
  - 
Lucy Shurtleff
  11,086 
 11,087
Ike McEntire
  5,373 
  5,373 
Christopher Carlin
  19,829 
  19,829 
 
The date of this Prospectus Supplement No.1 is January 19, 2018