NEW YORK, Jan. 13, 2020 (GLOBE NEWSWIRE) -- AzurRx BioPharma, Inc. (NASDAQ:AZRX), a company specializing in the development of non-systemic, recombinant therapies for gastrointestinal diseases, today announced the closing of a private placement financing resulting in gross proceeds of approximately $6.9 million from certain accredited investors. Alexander Capital, LP acted as sole placement agent in the Offering. Net proceeds from the Offering will be used to eliminate short- and long-term indebtedness, and for general working capital purposes, including product development.

James Sapirstein, the President and CEO of AzurRx, said “We are very grateful for the continued support of our investors. This financing allows us to achieve our short-term goals and continue the development of our MS1819 program for the treatment of exocrine pancreatic insufficiency in cystic fibrosis and chronic pancreatitis patients.”

The Offering consisted of Senior Convertible Promissory Notes (the “Notes”) and warrants (the “Warrants”) to purchase shares of the Company’s common stock (the “Common Stock”). The Notes mature on September 30, 2020, accrue interest at a rate of 9% per annum, and are convertible into Common Stock at $0.97 per share (the “Conversion Shares”). Warrants were issued to the investors in an amount equal to 50% of the number of Conversion Shares. The Warrants have an exercise price of $1.07 per share and expire three years from the date of issuance.

In aggregate, the Company issued $6,904,000 principal amount of Notes convertible into 7,117,559 Conversion Shares and Warrants to purchase up to 3,558,795 shares of Common Stock to the investors in the Offering.

For more detailed information on the Offering, please see the Company’s Current Report of Form 8-K to be filed with the Securities and Exchange Commission (SEC) on or about the date hereof.

About AzurRx BioPharma, Inc.

AzurRx BioPharma, Inc. (NASDAQ:AZRX) is engaged in the research and development of non-systemic biologics for the treatment of patients with gastrointestinal disorders. MS1819-SD recombinant lipase for EPI is the Company's lead development program, and additional early stage research is being conducted for the prevention of hospital-acquired infections. The Company is headquartered in Brooklyn, NY, with scientific operations based in Langlade, France. Additional information on the Company can be found at www.azurrx.com.