Hancock Jaffe Announces Registered Direct Offering Priced At Market

IRVINE, CA / ACCESSWIRE / June 1, 2020 / Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI)(NASDAQ:HJLIW), a developer of medical devices that restore cardiac and vascular health, announced today it has entered into a securities purchase agreement with certain accredited institutional investors to purchase approximately $1.333 million of its common stock in a registered direct offering and warrants to purchase shares of common stock in a concurrent private placement. The combined purchase price for one share of common stock and one warrant to purchase one share of common stock will be $0.455, which is priced at-the-market under Nasdaq rules.

Under the terms of the purchase agreement, HJLI has agreed to sell 2,930,402 shares of its common stock. In a concurrent private placement, HJLI has agreed to issue warrants to purchase up to an aggregate of 2,930,402 shares of common stock. The warrants will be exercisable immediately, will expire on the five year anniversary of the initial exercise date and will have an exercise price of $0.33 per share.

The gross proceeds to the Company from the registered direct offering and concurrent private placement are expected to be approximately $1.333 million before deducting the placement agents' fees and other estimated offering expenses. The Company intends to use the net proceeds for working capital and general corporate purposes. The registered direct offering and concurrent private placement is expected to close on or about June 3, 2020, subject to the satisfaction of customary closing conditions.

Spartan Capital Securities, LLC acted as the exclusive placement agent for the offering.

The common stock is being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-237592) previously filed and declared effective by the Securities and Exchange Commission (SEC). The warrants issued in the concurrent private placement and shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities law.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the shares of common stock will be filed by HJLI with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Spartan Capital Securities LLC, 45 Broadway, New York, NY 10006, by phone at (212) 293-0123 or e-mail at investmentbanking@spartancapital.com.

About Hancock Jaffe Laboratories, Inc.

Hancock Jaffe Laboratories (NASDAQ: HJLI) specializes in developing and manufacturing bioprosthetic (tissue based) medical devices to establish improved standards of care for treating cardiac and vascular diseases. Hancock Jaffe currently has two lead product candidates: the VenoValve®, a porcine based valve which is intended to be surgically implanted in the deep venous system of the leg to treat reflux associated with Chronic Venous Insufficiency; and the CoreoGraft®, a bovine tissue based off the shelf conduit intended to be used for coronary artery bypass surgery. Hancock Jaffe has a 20-year history of developing and producing FDA approved medical devices that sustain or support life. The current management team at Hancock Jaffe has been associated with over 50 FDA or CE marked medical devices. For more information, please visit HancockJaffe.com.

Cautionary Note on Forward-Looking Statements

This press release and any statements of stockholders, directors, employees, representatives and partners of Hancock Jaffe Laboratories, Inc. (the "Company") related thereto contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results (including, without limitation, the closing of the offering described herein and the use of proceeds upon such closing) may differ significantly from those set forth or implied in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.

HJLI Press Contact:

Amy Carmer
Tel: 949-261-2900
Email: ACarmer@HancockJaffe.com

SOURCE: Hancock Jaffe Laboratories, Inc.



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