Lpath closes $12.5 million registered direct offering

Lpath, Inc. (NASDAQ: LPTN), the industry leader in bioactive lipid-targeted therapeutics, announced today the closing of its previously announced $12.5 million registered direct offering. As previously disclosed, Lpath sold 3,605,042 registered shares of common stock and warrants to purchase 3,605,042 unregistered shares of common stock in a registered direct offering at a purchase price of $3.475 per share-and-warrant-share combination. The warrants have an exercise price of $3.36 per underlying share, are immediately exercisable, and terminate on the five-year anniversary of issuance. Maxim Group LLC acted as the exclusive placement agent for the offering.

As part of the transaction, Lpath has agreed not to issue any variable-rate securities for twelve months and not to sell shares through its currently registered at-the-market vehicle for six months.

Lpath intends to use the net proceeds from the offering for research and development activities, operating costs, capital expenditures and general corporate purposes, including working capital. Lpath may also use a portion of the net proceeds to invest in or acquire businesses or technologies that are complementary to its own, although it has no current plans, commitments or agreements with respect to any such acquisition.

The shares of common stock in the above-described transaction were offered by Lpath pursuant to a shelf registration statement on Form S-3 (file no. 333-190651), which was declared effective on August 23, 2013 by the Securities and Exchange Commission (SEC). A prospectus supplement relating to the offering of the shares will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. The warrants in the above-described transaction were offered in a private placement under Section 4(a)(2) under the Securities Act of 1933 (the "Securities Act") and Rule 506(c) promulgated thereunder and have not been registered under the Securities Act. Pursuant to a Registration Rights Agreement, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock issuable upon exercise of the warrants.