Filed Pursuant to Rule 424(b)(3)
Registration No. 333-239547
PROSPECTUS
2,580,644 SHARES
PLX PHARMA INC.
Common Stock ($0.001 par value)
This prospectus
relates to the resale of up to 2,580,644 shares of PLx Pharma Inc. (the “Company,” “we,” “our”
or “us”) common stock by the selling stockholders listed in this prospectus or their permitted transferees. The shares
of common stock being offered by the selling stockholders are those issuable to the selling stockholders upon conversion of convertible
preferred stock. The convertible preferred stock was originally issued in a private placement of 8,000 shares of Series B Convertible
Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”), to Park West Investors Master Fund, Limited,
a Cayman Islands exempted company (“PWIMF”), Park West Partners International, Limited, a Cayman Islands exempted company
(“PWPI” and, together with PWIMF, “Park West”), and MSD Credit Opportunity Master Fund, L.P., a Cayman
Islands exempted limited partnership (together with Park West, the “Investors”), completed on May 15, 2020. For more
information about the rights and preferences of the Series B Preferred Stock please see the section of this prospectus titled “Description
of Capital Stock – Series B Preferred Stock.” For more information about the terms of the private placement in which
the Series B Preferred Stock were issued, see the Company’s Form 8-K filed with the Securities and Exchange Commission on
March 13, 2020.
All of the shares
offered hereby are being sold by the selling stockholders named in this prospectus, and we will not receive any proceeds from sales
of these securities. We will bear the costs and fees of the registration of the shares, and the selling stockholders will bear
all commissions and discounts, if any, attributable to the sales of the shares.
The prices at which
the selling stockholders or their permitted transferees may dispose of their shares or interests therein will be determined by
the selling stockholders at the time of sale and may be at the prevailing market price for the shares, at prices related to such
market price, at varying prices determined at the time of sale, or otherwise as described under the section of this prospectus
under “Plan of Distribution” beginning on page 7. Information regarding the selling stockholders and the times and
manner in which they may offer and sell the shares or interests therein under this prospectus is provided under “Selling
Stockholders” and “Plan of Distribution” in this prospectus. The selling stockholders may resell the common stock
to or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions.
Our common stock
is listed on the Nasdaq Capital Market, or Nasdaq, under the symbol “PLXP.” On June 11, 2021, the last reported sale
price of our common stock on Nasdaq was $12.30.
The Company’s
headquarters is located at 9 Fishers Lane, Ste. E, Sparta, New Jersey 07871. Our telephone number is (973) 409-6541.
Investing in our
shares involves risk. You should carefully consider the risk factors for our shares, which are listed on page 5 of this prospectus.
See “Risk Factors.”
NEITHER THE SECURITIES AND EXCHANGE
COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS DETERMINED WHETHER THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. THEY HAVE NOT MADE,
NOR WILL THEY MAKE, ANY DETERMINATION AS TO WHETHER ANYONE SHOULD BUY THESE SECURITIES. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The date of this prospectus is June 11,
2021.
TABLE OF CONTENTS
This prospectus is part
of a registration statement on Form S-3 that we filed with the Securities and Exchange Commission, or the SEC, using a “shelf”
registration or continuous offering process. Under this shelf process, selling stockholders may from time to time sell the shares
of common stock described in this prospectus in one or more offerings.
All references to “Company,”
“we,” “our” or “us” refer solely to PLx Pharma Inc. and not to the persons who manage us or
sit on our Board of Directors or are our stockholders. Reference to “selling stockholders” refers to those stockholders
listed herein under “Selling Stockholders” beginning on page 6 of this prospectus, who may sell shares from time to
time as described in this prospectus. All trade names used in this prospectus are either our registered trademarks or trademarks
of their respective holders.
No person has been authorized
to give any information or to make any representations other than those contained in this prospectus in connection with the offering
made hereby, and if given or made, such information or representations must not be relied upon as having been authorized by the
Company, any selling stockholder or by any other person. Neither the delivery of this prospectus nor any sale made hereunder shall,
under any circumstances, create any implication that information herein is correct as of any time subsequent to the date hereof.
This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any security other than the securities
covered by this prospectus, nor does it constitute an offer to or solicitation of any person in any jurisdiction in which such
offer or solicitation may not lawfully be made.
PROSPECTUS SUMMARY
This summary
highlights selected information contained elsewhere or incorporated by reference in this prospectus. This summary may not contain
all the information that you should consider before determining whether to invest in our securities. You should read the entire
prospectus carefully, including the information included in the “Risk Factors” section, as well as our consolidated
financial statements, notes to the consolidated financial statements and the other information incorporated by reference into this
prospectus, as well as the exhibits to the registration statement of which this prospectus is a part, before making an investment
decision.
The Company
We are a late-stage
specialty pharmaceutical company focused on developing our clinically-validated and patent-protected PLxGuard delivery system to
provide more effective and safer products. Our PLxGuard delivery system works by targeting the release of active pharmaceutical
ingredients to various portions of the gastrointestinal (“GI”) tract. We believe this has the potential to improve
the absorption of many drugs currently on the market or in development, and to reduce the risk of stomach erosions, ulcers and
bleeding associated with aspirin and ibuprofen, and potentially other drugs.
The U.S. Food and
Drug Administration (“FDA”) approved our lead product, VAZALORE 325 mg, which is a novel formulation of aspirin using
the PLxGuard delivery system intended to provide better antiplatelet effectiveness for vascular disease prevention and treatment as
compared to the current standard of care, enteric-coated aspirin, and significantly reduce gastric side effects as compared
with immediate-release aspirin. VAZALORE 325 mg (formerly PL2200 Aspirin 325 mg and Aspertec 325 mg) was originally approved under
the drug name aspirin, and the proprietary name ‘VAZALORE’ was granted subsequent to the FDA approval. A companion
81 mg dose of the same novel formulation, VAZALORE 81 mg, is in late-stage development and will be the subject of a supplemental
New Drug Application (“sNDA”), leveraging the already approved status of VAZALORE 325 mg. We are focused on collecting
the data, including initiating a bioequivalence study, required for post-approval manufacturing changes which will be included
in the sNDA filing for VAZALORE 325 mg and to support approval of low dose VAZALORE 81 mg. The Company will be able to better
assess the timing of its product launch once the sNDA filings has been submitted.
Our commercialization
strategy will target both the over-the-counter (“OTC”) and prescription markets, taking advantage of the existing OTC
distribution channels for aspirin while leveraging the FDA approval of VAZALORE 325 mg and anticipated approval for VAZALORE
81 mg for OTC and prescription use when recommended by physicians for cardiovascular disease treatment and prevention. Given our
clinical demonstration of better antiplatelet efficacy (as compared with enteric-coated aspirin) and better GI safety, we intend
to market VAZALORE to the health care professional and the consumer through several marketing channels including a physician-directed
sales force. Our product pipeline also includes other oral NSAIDs using the PLxGuard delivery system that may be developed,
including a clinical-stage, GI-safer ibuprofen, PL1200 Ibuprofen 200 mg, for pain and inflammation.
We were originally
incorporated in Texas in 2002 and re-incorporated in Delaware in 2015. On April 19, 2017, Dipexium Acquisition Corp., a Delaware
corporation (“Merger Sub”) and a wholly-owned subsidiary of Dipexium Pharmaceuticals, Inc., a Delaware corporation
(“Dipexium”), merged with and into PLx Pharma Inc., a privately-held Delaware corporation (“Old PLx”),
pursuant to the terms of that certain Agreement and Plan of Merger and Reorganization dated as of December 22, 2016 by and among
Dipexium, Merger Sub and Old PLx (the “Merger”). As part of the Merger, Dipexium was re-named PLx Pharma Inc. and
Old PLx was re-named PLx Opco Inc. Following completion of the Merger, Old PLx became a wholly-owned subsidiary of the Company.
Since the completion of the Merger, the business we have conducted has been primarily the business of Old PLx. The combined company,
renamed as PLx Pharma Inc., together with its subsidiary PLx Opco Inc., is referred to herein as the “Company.”
The Company’s
headquarters is located at 9 Fishers Lane, Ste. E, Sparta, New Jersey 07871. Our telephone number is (973) 409-6541.
The Offering
Securities Covered Hereby
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2,580,644 shares of common stock, par value $0.001 per share.
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Use of Proceeds
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We are not selling any securities under this prospectus and will not receive any of the proceeds from the sale of these securities by the selling stockholders.
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NASDAQ Symbol
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PLXP
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Risk Factors
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Investing in our securities involves risks. Before making an investment decision, you should carefully consider the specific risks set forth under the caption “Risk Factors” beginning on page 5 of this prospectus. You should also refer to the other information in this prospectus, including our financial statements and the related notes incorporated by reference in this prospectus.
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RISK
FACTORS
Investing in our
securities involves significant risks. Before deciding whether to invest in our securities, you should consider carefully the risks,
uncertainties and assumptions described in this prospectus and any accompanying prospectus supplement, including the risk factors
set forth in our filings with the SEC that are incorporated by reference herein and therein, including the risk factors in our
most recent Annual Report on Form 10-K, as revised or supplemented by our Quarterly Reports on Form 10-Q, and which may be amended,
supplemented or superseded from time to time by other reports we file with the SEC in the future. There may be other unknown or
unpredictable economic, business, competitive, regulatory or other factors that could have material adverse effects on our future
results. If any of these risks actually occurs, our business, business prospects, financial condition or results of operations
could be seriously harmed. Please also read carefully the section below entitled “Forward-Looking Statements.”
FORWARD-LOOKING
STATEMENTS
This prospectus
and certain documents incorporated by reference in this prospectus contain forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,”
“should,” “could,” “would,” “expect,” “believe,” “estimate,”
“predict,” “potential,” or the negative of these terms, and similar expressions. These statements reflect
our current views with respect to future events. These statements involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements to be materially different from any future results, performances
or achievements expressed or implied by the forward-looking statements, many of which are discussed in greater detail under the
heading “Risk Factors” in this prospectus.
USE OF PROCEEDS
All proceeds from
the disposition of the common stock covered by this prospectus will go to the selling stockholders. We will not receive any proceeds
from the disposition of the common stock by the selling stockholders. See “Plan of Distribution.”
The selling stockholders
will pay any underwriting discounts and commissions and expenses incurred by the selling stockholders for brokerage, accounting,
tax or legal services or any other expenses incurred by the selling stockholders in disposing of the shares. We will bear the costs,
fees and expenses incurred to effect the registration of the shares covered by this prospectus, including all registration and
filing fees, Nasdaq listing fees and fees and expenses of counsel and our independent registered public accounting firm.
SELLING STOCKHOLDERS
The shares of common
stock being offered by the selling stockholders are those issuable to the selling stockholders upon conversion of the Series B
Preferred Stock. For additional information regarding the issuance of the Series B Preferred Stock, see “Description of Capital
Stock – Series B Preferred Stock” below. We are registering the shares of common stock to permit the selling stockholders
to offer such shares for resale from time to time.
The table below
lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each of
the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling stockholder
as of June 25, 2020. The third column lists the shares of common stock being offered by this prospectus by the selling stockholders.
Beneficial ownership
includes shares of common stock as to which a person or group has sole or shared voting power or dispositive power. Shares of common
stock registered hereunder, as well as shares of common stock subject to options, warrants or convertible preferred stock that
are exercisable or convertible within 60 days of June 25, 2020, are deemed outstanding for purposes of computing the number of
shares beneficially owned and percentage ownership of the person or group holding such shares of common stock, options, warrants
or convertible securities, but are not deemed outstanding for computing the percentage of any other person. Percentages are based
on 9,156,260 shares of common stock outstanding as of June 25, 2020.
In accordance with
the terms of that certain Purchase Agreement by and among the Company and the Investors, dated March 12, 2020 (the “Purchase
Agreement”), this prospectus generally covers the resale of the maximum number of shares of common stock potentially issuable
to the selling stockholders upon conversion of the Series B Preferred Stock. Because the conversion price of the Series B Preferred
Stock may be adjusted, the number of common shares that will actually be issued may be more or less than the number of shares being
offered by this prospectus. The fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant
to this prospectus.
The selling stockholders
may sell all, some or none of their shares in this offering. See “Plan of Distribution.”
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Shares
Beneficially Owned After Offering
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Name of Selling Stockholder
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Number
of Shares of Common Stock Owned Prior to Offering
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Maximum
Number of Shares of Common Stock to be Sold Pursuant to this Prospectus
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Number
of Shares of Common Stock Owned After Offering
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Percentage
of Outstanding Common Stock
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Park West Investors Master Fund, Limited (1)
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1,332,191 (2)
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1,758,064
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1,332,191
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14.5%
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Park West Partners International, Limited (1)
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141,027 (2)
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177,419
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141,027
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1.5%
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MSD Credit Opportunity Master Fund, L.P. (3)
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--
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645,161
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--
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*
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* Less than 1%.
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(1)
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Park West Asset Management LLC (“PWAM”), a Delaware limited liability company is the
investment manager to PWIMF and PWPI and Peter S. Park (“Mr. Park”), is the sole member and manager of PWAM. PWAM and
Mr. Park may be deemed to beneficially own the securities held by PWIMF and PWPI.
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(2)
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Based on information contained in a report on Schedule 13D/A filed jointly by PWAM, PWIMF and Mr.
Park on May 20, 2020.
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(3)
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MSD Partners, L.P. (“MSD Partners”), a Delaware limited partnership, is the investment
manager of, and may be deemed to beneficially own securities beneficially owned by MSD Credit Opportunity Master Fund,
L.P, a limited partnership organized under the laws of the Cayman Islands. MSD Partners (GP), LLC (“MSD GP”)
is the general partner of, and may be deemed to beneficially own securities beneficially owned by, MSD Partners.
Each of John Phelan and Marc R. Lisker is a manager of, and may be deemed to beneficially own securities beneficially owned by, MSD GP.
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Except for the ownership
of the Series B Preferred Stock issued pursuant to the Purchase Agreement, Park West’s ownership of shares of the Company’s
Series A Convertible Preferred Stock (the “Series A Preferred Stock”) issued in February 2019, and as described below
under “Description of Capital Stock – Preferred Stock,” including Anthony Bartsh’s election to the Board
of Directors of the Company, the selling stockholders have not had any material relationship with us within the past three years.
PLAN OF DISTRIBUTION
The selling stockholders, which as used
herein includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests in shares
of common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution
or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common stock or
interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private
transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to
the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.
The selling stockholders may use any
one or more of the following methods when disposing of shares or interests therein:
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·
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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·
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block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of
the block as principal to facilitate the transaction;
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·
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
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·
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an exchange distribution in accordance with the rules of the applicable exchange;
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·
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privately negotiated transactions;
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·
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short sales effected after the date the registration statement of which this prospectus is a part is declared effective by
the SEC;
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·
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through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
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·
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broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per
share;
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·
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a combination of any such methods of sale; and
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·
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any other method permitted by applicable law.
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The selling stockholders may, from time
to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in
the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from
time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus. The selling stockholders also may transfer the shares of common stock in other circumstances,
in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this
prospectus.
In connection with the sale of our common
stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume.
The selling stockholders may also sell shares of our common stock short and deliver these securities to close out their short
positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders
may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by
this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented
or amended to reflect such transaction).
The aggregate proceeds to the selling
stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or
commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time to
time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not
receive any of the proceeds from this offering. Upon any exercise of the warrants by payment of cash, however, we will receive
the exercise price of the warrants.
The selling stockholders also may resell
all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act of 1933, provided
that they meet the criteria and conform to the requirements of that rule.
The selling stockholders and any underwriters,
broker-dealers or agents that participate in the sale of the common stock or interests therein may be “underwriters”
within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale
of the shares may be underwriting discounts and commissions under the Securities Act. Selling stockholders who are “underwriters”
within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities
Act.
To the extent required, the shares of
our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering prices,
the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer will
be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus.
In order to comply with the securities
laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered or licensed brokers
or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for sale or
an exemption from registration or qualification requirements is available and is complied with.
We have advised the selling stockholders
that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities
of the selling stockholders and their affiliates. In addition, to the extent applicable we will make copies of this prospectus
(as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer that participates
in transactions involving the sale of the shares against certain liabilities, including liabilities arising under the Securities
Act.
We have agreed to indemnify the selling
stockholders against liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration
of the shares offered by this prospectus.
We have agreed with the selling stockholders
to keep the registration statement of which this prospectus constitutes a part effective until the earlier of (i) the date that
such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information
pursuant to Rule 144 and certain other conditions have been satisfied, or (ii) all of the securities have been sold or otherwise
disposed of pursuant to the registration statement of which this prospectus forms a part or in a transaction in which the transferee
receives freely tradable shares.
DESCRIPTION OF
CAPITAL STOCK
The Company is authorized
to issue 100,000,000 shares of common stock, par value $0.001 per share, and 1,000,000 shares of preferred stock, par value $0.001
per share. As of June 25, 2020 there were approximately 9,156,260 shares of common stock outstanding, 15,000 shares of Series A
Preferred Stock outstanding and 8,000 shares of Series B Preferred Stock outstanding.
The following is
a summary of the material terms of our capital stock and certain other securities convertible into our capital stock. You should
refer to our Amended Certificate of Incorporation (the “Certificate of Incorporation”), and Amended and Restated Bylaws
(the “Bylaws”) and the agreements and instruments described below for more detailed information.
Common Stock
Each share of common
stock entitles its record holder to one vote on all matters to be voted on by the common stockholders of the Company. Except as
otherwise provided by law, actions by the common stockholders of the Company may be approved by a majority vote of the stockholders
present at a duly called meeting of the stockholders at which a quorum is present; however, an amendment to the Bylaws by the stockholders
requires the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all
of the then outstanding shares of the capital stock of the Company entitled to vote at a meeting of stockholders, duly called.
The Board of Directors of the Company may, by majority vote of those present at any meeting at which a quorum is present, amend
the Bylaws, or enact such other Bylaws as in their judgment may be advisable for the regulation of the conduct of the affairs of
the Company. The Board of Directors of the Company currently consists of seven directors, each elected director, except the Series
A Director (as defined below) and the Series B Director (as defined below), serves annually until his or her successor is duly
elected and qualifies. At all meetings of stockholders for the election of directors, except the Series A Director and the Series
B Director, a majority of the votes cast is sufficient to elect. No provision of the Company’s Certificate of Incorporation
or Bylaws provides for cumulative voting in the case of the election of directors or on any other matter.
Each holder of common
stock of the Company is entitled to share pro rata in any dividends paid on the common stock out of assets legally available for
that purpose, when, and if declared by the Board of Directors of the Company. Upon the liquidation, dissolution or winding up of
the Company, the assets of the Company shall be distributed pro rata among the holders of common stock. However, the aforementioned
dividend and liquidation rights are limited and qualified by the Series A Preferred Stock and the Series B Preferred Stock, which
have a preference to any such distribution of the assets or funds. Other than the rights described above, the holders of common
stock have no redemption, preemptive, subscription or conversion rights, nor any rights to payment from any sinking or similar
fund, and are not subject to any calls or assessments. There are no restraints in the Certificate of Incorporation or Bylaws of
the Company on the right of holders of shares of common stock to sell or otherwise alienate their shares of stock in the Company,
and there are no provisions discriminating against any existing or prospective holder of shares of common stock as a result of
such security holder owning a substantial amount of securities.
In addition to the
Company’s outstanding common stock, the Company has outstanding options to purchase its common stock held by its employees
and directors and additional shares available for issuance under several equity compensation plans, as further described in the
Company’s periodic reports filed with the SEC.
Preferred Stock
The Company was
authorized to issue 1,000,000 shares of preferred stock, par value $0.001 per share. In February 2019, pursuant to this authorization,
the Company designated 45,000 shares as Series A Preferred Stock and issued 15,000 of such shares. This leaves 30,000 shares of
authorized but unissued Series A Preferred Stock. In May 2020, pursuant to this authorization, the Company designated 25,000 shares
as Series B Preferred Stock and issued 8,000 of such shares. This leaves 17,000 shares of authorized but unissued Series B Preferred
Stock. The Company currently has 23,000 shares of preferred stock issued and outstanding. This leaves 977,000 shares of preferred
stock authorized but unissued. The shares of common stock being offered by the selling stockholders are those issuable to the selling
stockholders upon conversion of the Series B Preferred Stock.
Series A Preferred
Stock
On February 20,
2019, the Company issued to Park West 15,000 shares of Series A Preferred Stock, par value $0.001 per share, at a price of $1,000
per share, subject to the terms of the Amended and Restated Certificate of Designations, Preferences and Rights of Series A Convertible
Preferred Stock (the “Series A Certificate of Designation”).
Pursuant to the
Series A Certificate of Designation, each share of Series A Preferred Stock can be converted, at the holder’s option at any
time, into shares of the Company’s common stock at a conversion rate equal to the quotient of (i) the $1,000 stated value
divided by (ii) the initial conversion price of $2.60, subject to specified adjustments for stock splits, cash or stock dividends,
recapitalizations, combinations, subdivisions or other similar events as set forth in the Series A Certificate of Designation.
The Series A Preferred Stock contain limitations that prevent the holder from acquiring shares of the Company’s common stock
upon conversion that would result in the number of shares beneficially owned by such holder and its affiliates exceeding the Beneficial
Ownership Limitation (as defined in the Series A Certificate of Designation).
Each holder of shares of Series A Preferred
Stock will also receive quarterly dividends ending on the Dividend End Date (as defined in the Series A Certificate of Designation).
Such dividends will be paid by the Company out of funds legally available therefor, payable, subject to the conditions and other
terms set forth in the Series A Certificate of Designation, in cash or in-kind in additional shares of Series A Preferred Stock
on the stated value of such shares of Series A Preferred Stock at the dividend rate of eight percent (8%) per annum. To the extent
that applicable law or any of the Company’s existing contractual restrictions prohibit any required issuance of additional
shares of Series A Preferred Stock as in-kind dividends or otherwise (the “Additional Series A Shares”), then appropriate
adjustment to the conversion price of the Series A Preferred Stock shall be made at the time of a conversion of shares of Series
A Preferred Stock or calculation of the number of shares of Common Stock into which shares of Series A Preferred Stock are convertible,
such that the number of resulting conversion shares includes the aggregate number of shares of Common Stock into which such Series
A Preferred Stock shares plus any Additional Series A Shares would be convertible.
Each share of Series
A Preferred Stock carries a liquidation preference equal to its stated value of $1,000 (as adjusted thereunder) plus accrued and
unpaid dividends thereon, and also carries a redemption right upon certain change of control transactions equal to the greater
of the liquidation preference and the value of the common stock issuable upon conversion thereof (without regard to the Beneficial
Ownership Limitation), based upon a thirty-day volume weighted average price of the common stock prior to the date of the redemption
request.
The holders of the
Series A Preferred Stock, voting as a separate class, have customary consent rights with respect to certain corporate actions of
the Company, including (a) authorizing, creating, designating, establishing, issuing or selling an increased number of shares of
Series A Preferred Stock or any other class or series of capital stock ranking senior to or on parity with the Series A Preferred
Stock as to dividends or upon liquidation; (b) adopting a plan for the liquidation, dissolution or winding up of the affairs of
the Company or any recapitalization plan, file any petition seeking protection under any federal or state bankruptcy or insolvency
law or make a general assignment for the benefit of creditors; (c) entering into any Change of Control Transaction (as defined
in the Series A Certificate of Designation); (d) entering into any transaction with any affiliate or shareholder of the Company,
which transaction has the effect, directly or indirectly, of causing a distribution to such affiliate or shareholder in preference
to the Series A Preferred Stock; (e) incurring, assuming or suffering to exist any indebtedness for borrowed money in excess of
$15,000,000 in the aggregate; (f) amending, altering or repealing the Certificate of Incorporation or Bylaws and the powers, preferences,
privileges, relative, participating, optional and other special rights and qualifications, limitations and restrictions thereof,
which would adversely affect any right, preference, privilege or voting power of the Series A Preferred Stock, or which would increase
or decrease the amount of authorized shares of the Series A Preferred Stock or of any other series of preferred stock ranking senior
to the Series A Preferred Stock; or (g) materially change the nature or scope of the business of the Company or enter into any
new line of business.
In addition, the
holders of the Series A Preferred Stock have the exclusive right, voting separately as a class, to elect one (1) director (the
“Series A Director”) to the Board of Directors of the Company, for so long as Park West Asset Management LLC and its
affiliates hold at least twenty-five percent (25%) of the issued and outstanding Series A Preferred Stock. Mr. Bartsh was designated
for election to, and currently serves as, the Series A Director.
Series B Preferred
Stock
On May 15, 2020,
the Company issued to the Investors 8,000 shares of Series B Preferred Stock, par value $0.001 per share, at a price of $1,000
per share, subject to the terms of the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock
(the “Series B Certificate of Designation”).
Pursuant to the
Series B Certificate of Designation, each share of Series B Preferred Stock can be converted, at the holder’s option at any
time, into shares of the Company’s common stock at a conversion rate equal to the quotient of (i) the $1,000 stated value
divided by (ii) the initial conversion price of $3.10, subject to specified adjustments for stock splits, cash or stock dividends,
recapitalizations, combinations, subdivisions or other similar events as set forth in the Series B Certificate of Designation.
The Series B Preferred Stock contain limitations that prevent the holder from acquiring shares of the Company’s common stock
upon conversion that would result in the number of shares beneficially owned by such holder and its affiliates exceeding the Beneficial
Ownership Limitation (as defined in the Series B Certificate of Designation).
Each holder of shares of Series B Preferred
Stock will also receive quarterly dividends ending on the Dividend End Date (as defined in the Series B Certificate of Designation).
Such dividends will be paid by the Company out of funds legally available therefor, payable, subject to the conditions and other
terms set forth in the Series B Certificate of Designation, in cash or in-kind in additional shares of Series B Preferred Stock
on the stated value of such shares of Series B Preferred Stock at the dividend rate of eight percent (8%) per annum. To the extent
that applicable law or any of the Company’s existing contractual restrictions prohibit any required issuance of additional
shares of Series B Preferred Stock as in-kind dividends or otherwise (the “Additional Series B Shares”), then appropriate
adjustment to the conversion price of the Series B Preferred Stock shall be made at the time of a conversion of shares of Series
B Preferred Stock or calculation of the number of shares of Common Stock into which shares of Series B Preferred Stock are convertible,
such that the number of resulting conversion shares includes the aggregate number of shares of Common Stock into which such Series
B Preferred Stock shares plus any Additional Series B Shares would be convertible.
Each share of Series B Preferred Stock carries a liquidation
preference equal to its stated value of $1,000 (as adjusted thereunder) plus accrued and unpaid dividends thereon, and also carries
a redemption right upon certain change of control transactions equal to the greater of the liquidation preference and the value
of the common stock issuable upon conversion thereof (without regard to the Beneficial Ownership Limitation), based upon a thirty-day
volume weighted average price of the common stock prior to the date of the redemption request.
The holders of the
Series B Preferred Stock, voting as a separate class, have customary consent rights with respect to certain corporate actions of
the Company, including (a) authorizing, creating, designating, establishing, issuing or selling an increased number of shares of
Series B Preferred Stock or any other class or series of capital stock ranking senior to or on parity with the Series B Preferred
Stock as to dividends or upon liquidation; (b) adopting a plan for the liquidation, dissolution or winding up of the affairs of
the Company or any recapitalization plan, file any petition seeking protection under any federal or state bankruptcy or insolvency
law or make a general assignment for the benefit of creditors; (c) entering into any Change of Control Transaction (as defined
in the Series B Certificate of Designation); (d) entering into any transaction with any affiliate or shareholder of the Company,
which transaction has the effect, directly or indirectly, of causing a distribution to such affiliate or shareholder in preference
to the Series B Preferred Stock; (e) incurring, assuming or suffering to exist any indebtedness for borrowed money in excess of
$15,000,000 in the aggregate; (f) amending, altering or repealing the Certificate of Incorporation or Bylaws and the powers, preferences,
privileges, relative, participating, optional and other special rights and qualifications, limitations and restrictions thereof,
which would adversely affect any right, preference, privilege or voting power of the Series B Preferred Stock, or which would increase
or decrease the amount of authorized shares of the Series B Preferred Stock or of any other series of preferred stock ranking senior
to the Series B Preferred Stock; or (g) materially change the nature or scope of the business of the Company or enter into any
new line of business.
In addition, the
holders of the Series B Preferred Stock have the exclusive right, voting separately as a class, to elect one (1) director (the
“Series B Director”) to the Board of Directors of the Company, for so long as Park West Asset Management LLC and its
affiliates hold at least twenty-five percent (25%) of the issued and outstanding Series B Preferred Stock; provided that, so long
as the holders of Series A Preferred Stock have the right to elect a Series A Director, the Series B Director shall be the same
individual as the Series A Director. Anthony Bartsh currently serves as the Series A Director and the Series B Director.
Anti-Takeover Provisions
The Company may
issue up to an additional 977,000 shares of preferred stock on such terms and with such rights, preferences and designations, including,
without limitation restricting dividends on its common stock, dilution of the voting power of its common stock and impairing the
liquidation rights of the holders of its common stock, as the Board of Directors of the Company may determine without any vote
of the stockholders. The issuance of such preferred stock, depending upon the rights, preferences and designations thereof may
have the effect of delaying, deterring or preventing a change in control of the Company.
In addition, as
more fully explained in Item 15 below, the Company is subject to Section 203 of the Delaware General Corporation Law (“DGCL”),
which may restrict the ability of stockholders to authorize a merger, business combination or change of control. Further, the Company
has entered into change of control agreements through employment agreements, which may also have the effect of delaying, deterring
or preventing a change in control.
Transfer Agent
and Registrar; Market Listing
The transfer agent
for the Company’s common stock is VStock Transfer, LLC. Our common stock is traded on Nasdaq under the symbol “PLXP.”
LEGAL MATTERS
Certain legal matters
in connection with the issuance of the shares of common stock offered hereby have been passed upon for the Company by Olshan Frome
Wolosky LLP, 1325 Avenue of the Americas, New York, New York 10019.
EXPERTS
The
consolidated financial statements incorporated in this prospectus by reference from the Company’s Annual Report on Form 10-K
for the years ended December 31, 2019 and 2018 have been audited by Marcum LLP, an independent registered public accounting firm,
as stated in their report, which is incorporated herein by reference.
Such
financial statements have been so incorporated in reliance upon the reports of such firms given upon their authority as experts
in accounting and auditing.
ADDITIONAL INFORMATION
We file annual,
quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet site at http://www.sec.gov
that contains reports, proxy and information statements, and other information regarding issuers, such as us, that file electronically
with the SEC. Additionally, you may access our filings with the SEC through our website at https://plxpharma.com/. The information
on our website is not part of this prospectus.
The SEC allows us
to incorporate by reference the information we file with it, which means that we can disclose important information to you by referring
you to those documents. The information we incorporate by reference is considered to be part of this prospectus, and information
that we file later with the SEC will automatically update and supersede this information. We incorporate by reference the documents
listed below and any future filings made by us with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange
Act of 1934, until the sale of all the shares of common stock that are part of this offering. The documents we are incorporating
by reference are as follows:
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(1)
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Our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March
13, 2020, as amended on Form 10-K/A on April 24, 2020;
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(2)
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Our Definitive Proxy Statement on Schedule 14A, filed with the SEC on July 2, 2019;
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(3)
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Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC
on May 15, 2020;
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(4)
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Our Current Reports on Form 8-K (other than information furnished rather than filed) filed with
the SEC on January 6, 2020, March 13, 2020, April 23, 2020, May 4, 2020 and May 18, 2020; and
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(5)
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The description of our common stock contained in our registration statement on Form 8-A declared
effective by the SEC on March 12, 2014, including any amendments or reports filed for the purpose of updating that description.
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All documents filed
pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, after the date of the initial registration statement and prior
to effectiveness of the registration statement and after the date of this prospectus but prior to the filing of a post-effective
amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining
unsold shall be deemed to be incorporated by reference into this registration statement and to be a part hereof from the date of
filing of such documents, provided, however, that the registrant is not incorporating any information furnished under either Item
2.02 or Item 7.01 of any Current Report on Form 8-K.
Any document, and
any statement contained in a document, incorporated or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for purposes of this prospectus to the extent that a statement contained herein, or in any other subsequently filed
document that also is incorporated or deemed to be incorporated by reference herein, modifies or supersedes such document or statement.
Any such document or statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute
a part of this prospectus.
The documents incorporated
by reference in this prospectus may be obtained from us without charge and will be provided to each person, including any beneficial
owner, to whom a prospectus is delivered. You may obtain a copy of the documents at no cost by submitting an oral or written request
to:
PLx Pharma Inc.
9 Fishers Lane, Ste. E
Sparta, New Jersey 07871
Attention: Corporate Secretary
Telephone: (973) 409-6541
Additional information
about us is available at our web site located at https://plxpharma.com/. Information contained in our web site is not a part of
this prospectus.
DISCLOSURE OF
COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Company, the
Company has been advised that it is the SEC’s opinion that such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable.