TONIX receives net proceeds of $1.9M in private placement

TONIX Pharmaceuticals Holding Corp. (OTCBB:TNXP) ("TONIX" or the "Company"), a specialty pharmaceutical company developing therapies for challenging disorders of the central nervous system ("CNS"), including fibromyalgia syndrome ("FM") and post-traumatic stress disorder ("PTSD"), has received net proceeds of approximately $1.9 million in a private placement offering to institutional and accredited investors (the "Offering"). In addition, $1.9 million of previously issued convertible debentures converted into the Offering.

In connection with the closing, the Company issued approximately 172 units (the "Units"), each consisting of 25,000 shares of common stock, Class A warrants to purchase 25,000 shares of common stock, and Class B warrants to receive up to 25,000 shares of common stock. The Class A warrants have an exercise price of $1.25 per share of the common stock and will be exercisable for a period of five years from the date of issuance. The Class B warrants will be exercised automatically on their expiration date by cashless exercise, or expire without exercise. The maximum number of shares received related to the automatic exercise of the Class B warrants, if any, is one share per Class B warrant and will be determined by the stock price of the common stock prior to the termination date. The purchase price of each Unit was $25,000.

TONIX intends to use the net proceeds from the Offering to fund its TNX-102 pharmacokinetic study and first pivotal trial, to fund development of its other product candidates, to repay debt, to pay interest, and for general working capital. The debt repaid was $150,000 of the previously issued debentures that did not convert into the Offering. The interest paid to all previously issued debenture holders was $44,417.