Zynerba Pharmaceuticals (NASDAQ:ZYNE) signed an equity purchase agreement for up to $20M with Chicago-based Lincoln Park Capital Fund.
Under the agreement, the cannabinoid therapy maker will have the right, to sell up to $20M worth of common shares to LPC over the three year term of the contract.
Zynerba said any stock sold will be at market prices prevailing at that time.
The company expects to use any net proceeds from the sale for working capital and general corporate purposes, including research and development expenses and capital expenditures.
Zynerba noted that it may terminate the agreement at any time without any cost or penalty.