Summit Announces Agreement For a Fundraising of approximately $50 Million

Summit today announces that it has entered into a binding agreement with the Company’s Chief Executive Officer and Executive Chairman, Robert W. Duggan, for a fundraising of approximately $50 million (the “Fundraising”) through the issuance and sale in a private placement of shares of common stock to Mr. Duggan.  The transaction provides Summit the ability to place up to 14,970,060 new shares of common stock with Mr. Duggan in exchange for up to $50 million in new investment. The aggregate purchase price will reflect a price of $3.34 per share of common stock. The price per share of the common stock sold in the Fundraising represents the Nasdaq closing price per share immediately preceding the entry into the binding agreement for the Fundraising.

The purchase agreement also affords Summit the flexibility to place fewer than the maximum shares of common stock with Mr. Duggan, in the Company’s discretion, provided that no less than 9,730,539 shares of common stock shall be sold to Mr. Duggan in the offering. Prior to the closing of the Fundraising, which Summit expects to occur in approximately two weeks’ time, the Company intends to engage with third parties who may have an interest in making an investment in the Company on similar terms as those agreed with Mr. Duggan.

Summit believes that the net proceeds of the Fundraising will extend its cash runway to the third quarter of 2021. The Company expects to use these funds to support the following activities:

  • Ridinilazole: Continued patient enrolment into the Ri-CoDIFy Phase 3 clinical trial program of ridinilazole for the treatment of Clostridium difficile infection.
  • Ridinilazole: Preparatory activities to support the commercial launch of ridinilazole, if approved.
  • Development of early-stage research projects using the Company’s Discuva Platform.
  • General corporate purposes.

The securities issued to Mr. Duggan at the closing and any securities issued to third parties on similar terms on or around such date will not be registered under the Securities and Exchange Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration requirements.

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