Catabasis Pharmaceuticals Announces Closing of $42M Underwritten Public Offering

Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB), a clinical-stage biopharmaceutical company, today announced the closing of its previously announced underwritten public offering of an aggregate of 42,000,000 units. Each unit is comprised of one share of common stock and one common warrant to purchase one share of common stock, at a price of $1.00 per unit. Each common warrant has an exercise price of $1.20 per share and is exercisable immediately. The common warrants will expire five years from the date of issuance. The gross proceeds of the offering are $42 million, prior to deducting the underwriting discount and commissions and other estimated offering expenses.

Oppenheimer & Co. Inc. acted as sole underwriter for the offering.

Catabasis intends to use the net proceeds from the offering for the planned Phase 3 clinical trial of edasalonexent for the treatment of Duchenne muscular dystrophy, as well as for working capital and general corporate purposes.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-225410), as amended, which was declared effective by the Securities and Exchange Commission on June 19, 2018 and an additional registration statement filed pursuant to Rule 462(b) (File No. 333-225734), which became effective when filed. The offering was made only by means of a prospectus forming part of the effective registration statement. A final prospectus relating to the offering was filed with the Securities and Exchange Commission and is available at www.sec.gov. Copies of the final prospectus may be obtained for free by contacting Oppenheimer & Co. Inc. Attention: Syndicate Prospectus Department, 85 Broad St., 26th Floor, New York, NY 10004, by telephone at (212) 667-8563 or by email at EquityProspectus@opco.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Catabasis
At Catabasis Pharmaceuticals, our mission is to bring hope and life-changing therapies to patients and their families. Our lead program is edasalonexent, an NF-kB inhibitor in development for the treatment of Duchenne muscular dystrophy. Edasalonexent was designed using our SMART (Safely Metabolized And Rationally Targeted) Linker drug discovery platform that enables us to engineer molecules that simultaneously modulate multiple targets in a disease.

Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “expect,” “intend,” “anticipate,” “believe,” or similar expressions that are intended to identify such forward-looking statements. The Company cautions that such statements involve risks and uncertainties that may materially affect the Company’s results of operations. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to the risks and uncertainties associated with market conditions, the possible adverse impact on the market price of our shares of common stock due to the dilutive effect of the securities sold in the offering, our ability to raise additional capital when needed, the Company’s intended use of proceeds, as well as risks and uncertainties detailed in the Company’s filings with the SEC, including the registration statement on Form S-1 relating to this offering and the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2018. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this release.

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