As Filed Withfiled with the Securities and Exchange Commission on December 23, 2015
April 5, 2019
Registration No. 333-____________333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S‑3
S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
SPECTRUM PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
_______________________________________
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Delaware | 93-0979187 |
Delaware
(State or other jurisdiction of
incorporation or organization)
| | 93-0979187
(I.R.S. Employer
Identification No.)
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11500 South Eastern Avenue, Suite 240
Henderson, Nevada 89052
(702) 835-6300
(Address, including zip code, and telephone number, including area code of registrant’s principal executive offices)
Keith McGahan
Senior Vice President, Chief Legal Officer and Corporate Secretary
Rajesh C. Shrotriya, M.D.
Chief Executive Officer
Spectrum Pharmaceuticals, Inc.
11500 South Eastern Avenue, Suite 240
Henderson, Nevada 89052
(702) 835-6300
(Name, address, including zip code, and telephone number, including area code of agent for service)
Copies to:
Teri O’Brien
Paul Hastings LLP
4747 Executive Drive, 12th Floor
San Diego, California 92121
(858) 458-3031
Marc G. Alcser, Esq.
Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
(949) 725-4000
Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this Registration Statement.Statement, as the registrant shall determine.
If the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ¨☐
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. x☒
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check
the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨☐
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨☐
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ¨☒
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ¨☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
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Large accelerated filer | ý
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Non-accelerated filer (Do | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
CALCULATION OF REGISTRATION FEE
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Title of each class of securities to be registered | Amount to be registered (1) | Proposed maximum offering price per unit | Proposed maximum aggregate offering price (1) | Amount of registration fee (1) |
| Debt Securities, Preferred Stock (2), Common Stock (3) and Warrants of Spectrum Pharmaceuticals, Inc. and Units of the Securities listed above. | | | | |
| Total | $250,000,000 | (1) | $250,000,000 | $13,950 (4) |
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| Title of each class of securities to be registered | Proposed maximum aggregate offering price(1) | Amount of registration fee |
| Primary Offering of Securities: | | |
| Common Stock, par value $0.001 per share | (2) | (3) |
| Preferred Stock, par value $0.001 per share | (2) | (3) |
| Debt Securities | (2) | (3) |
| Warrants | (2) | (3) |
| Units(4) | (2) | (3) |
| Primary Offering of Common Stock: | | |
| Common Stock, par value $0.001 per share | $150,000,000 | $18,180(5) |
| Total(6) | $150,000,000 | $18,180 |
(1)An indeterminate aggregate initial offering price or unspecified number of securities of each identified class is being registered for issuance as may from time to time be offered at indeterminate prices, with an aggregate initial offering price not to exceed $250,000,000. Separate consideration may or may not be received for securities that are issuable on exercise, conversion or exchange of other securities or that are issued in units.
(2)Includes an indeterminate number of shares of Spectrum Pharmaceuticals, Inc.’s (the “Registrant”) preferred stock that may be issued upon exercise of warrants or conversion of debt securities or preferred stock registered hereby.
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| (1) | An indeterminate amount of common stock, preferred stock, debt securities, warrants and/or units. There is also being registered hereunder such currently indeterminate number of (i) shares of common stock or other securities of the registrant as may be issued upon conversion of, or in exchange for, convertible or exchangeable debt securities and/or preferred stock registered hereby, or (ii) shares of preferred stock, common stock, debt securities or units as may be issued upon exercise of warrants registered hereby, as the case may be. Any securities registered hereunder may be sold separately or as units with the other securities registered hereunder. Pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement also covers any additional securities that may be offered or issued in connection with any stock split, stock dividend or pursuant to anti-dilution provisions of any of the securities. |
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| (2) | Not applicable pursuant to General Instruction II.E. of Form S-3 under the Securities Act. |
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| (3) | In accordance with Rules 456(b) and 457(r) under the Securities Act, the registrant is deferring payment of all registration fees and will pay the registration fees subsequently in advance or on a “pay-as-you-go” basis. Separate consideration may or may not be received for securities that are issuable upon conversion, exercise or exchange of other securities. |
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| (4) | Each unit will be issued under a unit agreement and will represent an interest in two or more securities, which may or may not be separable from one another. |
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| (5) | Calculated pursuant to Rule 457(o) and Rule 457(r) under the Securities Act. |
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| (6) | The securities registered hereunder may be sold separately or in a combination with other securities registered hereby. Does not include registration fees deferred in accordance with Rules 456(b) and 457(r) under the Securities Act, as described in Note (3) above. |
(3)Includes an indeterminate number of shares of the Registrant’s common stock that may be issued upon conversion of the preferred stock or debt securities or upon exercise of warrants registered hereby. Includes associated preferred stock purchase rights under the Registrant’s Rights Agreement dated as of December 13, 2010. Prior to the occurrence of certain events, the preferred stock purchase rights will not be exercisable or evidenced separately from the Registrant’s common stock.
(4)The Registrant, in accordance with Rule 414(d) under the Securities Act, previously paid a registration fee of $13,950 in connection with a previously filed Registration Statement on Form S-3, File No. 333-163366, originally filed with the Securities and Exchange Commission on November 25, 2009 and subsequently declared effective (the “Original Registration Statement”). The Registrant did not sell any of the $250,000,000 of the Registrant’s securities registered pursuant to the Original Registration Statement, resulting in an unused registration fee of $13,950. Pursuant to Rule 415(a)(6) under the Securities Act, the Registrant included all of the $250,000,000 of securities and the unused registration fee of $13,950 in its Registration Statement on Form S-3, File No. 333-185115, filed with the Securities and Exchange Commission on November 21, 2012 and subsequently declared effective (the “Subsequent Registration Statement”). The Registrant did not sell any of the $250,000,000 of the Registrant’s securities registered pursuant to the Subsequent Registration Statement, resulting in an unused registration fee of $13,950. Pursuant to Rule 415(a)(6) under the Securities Act, (a) the Registrant hereby includes in this registration statement all of the $250,000,000 of securities unsold under the Subsequent Registration Statement and (b) the filing fee of $13,950 that is associated with the unsold securities from the Subsequent Registration Statement is applied to the securities from the Subsequent Registration Statement that are included in this registration statement. In accordance with Rule 415(a)(6), the Subsequent Registration Statement will be deemed terminated as of the effective date of this registration statement.
The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
EXPLANATORY NOTE
This registration statement contains two prospectuses:
a base prospectus which covers the offering, issuance and sale of up to $250,000,000 of common stock, preferred stock, debt securities, warrants for debt or equity securities and unitsby the Registrant of the Registrant;securities identified above from time to time in one or more offerings; and
a sales agreement prospectus covering the offering, issuance and sale of up to $100,000,000 of the Registrant’s common stock that may be issued and sold under an At Market Issuance Sales Agreement dated December 23, 2015 among the Registrant, FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. | |
| • | a sales agreement prospectus covering the offering, issuance and sale by the Registrant of up to a maximum aggregate offering price of $150,000,000 of the Registrant’s common stock that may be issued and sold under the Controlled Equity OfferingSM Sales Agreement, dated April 5, 2019, among the Registrant and Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC and B. Riley FBR, Inc. |
The base prospectus immediately follows this explanatory note. The specific terms of any securities to be offered pursuant to the base prospectus will be specified in aone or more prospectus supplementsupplements to the base prospectus. The sales agreement prospectus immediately follows the base prospectus. The common stock that may be offered, issued and sold by the Registrant under the sales agreement prospectus is included in the $250,000,000 of securities that may be offered, issued and sold by the Registrant under the base prospectus.
PROSPECTUS
The information in this prospectus is not complete and may be changed. We may not sell these securities or accept an offer to buy these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities, and it is not soliciting offers to buy these securities in any state where such offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED DECEMBER 23, 2015
$250,000,000
Debt Securities
Preferred Stock
Common Stock
WarrantsPreferred Stock
Debt Securities
Warrants
Units
______________________
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This prospectus relates to common stock, preferred stock, debt securities, warrants for debt or equity securities and units consisting of the foregoing that we may sell from time to time in one or more transactions. The aggregate initial offering price of all securities sold under this prospectus will not exceed $250,000,000. We will provide the specific terms and conditions of these transactions and the securities we may sell in supplements to this prospectus prepared in connection with each transaction. The applicable prospectus supplement will contain information, where applicable, as to other listings, if any, on the Nasdaq Global Select Market, or the NASDAQ, or any securities exchange of the securities covered by the prospectus supplement. Any such prospectus supplement may also add, update or change information in this prospectus. We may also authorize one or more free writing prospectuses to be provided to you in connection with these offerings. You should carefully read this prospectus, any applicable prospectus supplement and any related free writing prospectuses, as well as the documents incorporated by reference or deemed to be incorporated by reference into this prospectus, carefully before you invest. This prospectus may not be used to offer or sell securities unless accompanied by a prospectus supplement.
Our common stock is traded on the NASDAQ under the symbol “SPPI.”
Investing in our securities involves a high degree of risk. See “Risk Factors”You should review carefully the risks and uncertainties referenced under the heading “Risk Factors” on page 4 of this prospectus and contained in our filings made with the Securities and Exchange Commission and the applicable prospectus supplement.
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The securities may be sold directly by us to investors, through agents designated from time to time or to or through underwriters or dealers. For additional information on the methods of sale, you should refer to the section entitled “Plan of Distribution” in this prospectus. If any underwriters are involved in the sale of these securities with respect to which this prospectus is being delivered, the names of such underwriters and any applicable commissions or discounts and over-allotment options will be set forth in a prospectus supplement. The price to the public of such securities and the net proceeds that we expect to receive from such sale will also be set forth in a prospectus supplement. No securities may be sold without delivery of this prospectus and the applicable prospectus supplement describing the method and terms of the offering of such securities.
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Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is ___________ __, 20__.April 5, 2019.
TABLE OF CONTENTS
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| ABOUT THIS PROSPECTUS | |
| ABOUT SPECTRUM PHARMACEUTICALS, INC. | |
| RISK FACTORS | 3 |
| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | 3 |
| USE OF PROCEEDS | 3 |
RATIO OF EARNINGS TO FIXED CHARGES | 4 |
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS | 4 |
DESCRIPTIONDESCRIPTIONS OF CAPITAL STOCK WE MAY OFFERMAYOFFER | 5 |
| DESCRIPTION OF DEBT SECURITIES WE MAY OFFER | 8 |
| DESCRIPTION OF WARRANTS WE MAY OFFER | 15 |
| DESCRIPTION OF UNITS WE MAY OFFER | 17 |
| PLAN OF DISTRIBUTION | 18 |
| LEGAL MATTERS | 20 |
| EXPERTS | 20 |
| WHERE YOU CAN FIND MORE INFORMATION | 20 |
| INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE | 20 |
ABOUT THIS PROSPECTUS
This prospectus is part of aan automatic shelf registration statement on Form S-3 that we filed with the U.S. Securities and Exchange Commission, or the SEC, as a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act of 1933, as amended, or the Securities Act, utilizing a “shelf” registration process. Under this shelf registration process, we may, from time to time, offer and sell common stock, preferred stock, debt securities, warrants for debt and equity securities and units consisting of the foregoing in one or more transactions. The aggregate public offering price of the securities we sell in these transactions will not exceed $250,000,000.
This prospectus only provides you with a general description of the securities we may sell in these transactions. Each time we sell any securities under this prospectus, we will provide a prospectus supplement that will contain specific information about the terms of that offering. The prospectus supplement also may add, update or change information contained in this prospectus. We may also authorize one or more free writing prospectuses to be provided to you that may contain material information relating to these offerings.
This prospectus does not contain all of the information included in the registration statement we filed with the SEC. For further information about us or the securities offered hereby, you should carefully read this prospectus, any applicable prospectus supplement, any related free writing prospectuses, the information and documents incorporated herein by reference and the additional information under the heading “Where You Can Find Additional Information” before making an investment decision.
You should rely only on the information contained or incorporated by reference in this prospectus, any applicable prospectus supplement and any related free writing prospectuses that we may authorize to be provided to you. We have not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus and the accompanying supplement to this prospectus are not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus, any applicable prospectus supplement or any related free writing prospectuses, as well as information we have previously filed with the SEC and incorporated by reference, is accurate only as of the date on the cover of those documents. OurIf any statement in one of these documents is inconsistent with a statement in another document having a later date—for example, a document incorporated by reference in this prospectus—the statement in the document having the later date modifies or supersedes the earlier statement as our business, financial condition, results of operations and prospects may have changed since thosethe earlier dates.
This prospectus may not be used to consummate sales of any of these securities unless it is accompanied by a prospectus supplement. To the extent there are inconsistencies between any prospectus supplement, this prospectus and/or any documents incorporated by reference, the document with the most recent date will control.
ABOUT SPECTRUM PHARMACEUTICALS, INC.
PROSPECTUS SUMMARY
Unless otherwise indicated or the context otherwise requires, the terms “Company,” “Spectrum Pharmaceuticals,” “we,” “us” and “our” refer to Spectrum Pharmaceuticals, Inc., a Delaware corporation, and its predecessors and consolidated subsidiaries.
Business Overview of Spectrum Pharmaceuticals, isInc.
We are a biotechnologybiopharmaceutical company with fully integrated commercialfocused on acquiring, developing, and commercializing novel and targeted drug development operations,products, with a primary focus on in oncology. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to sales and marketing expertise to execute product launches.
On March 1, 2019, we completed the sale of the assets and liabilities related to various hematology/oncology and hematology. products of the Company.
We currently market five intravenous drug productshave two oncology drugs in late-stage and active development:
ROLONTIS, a novel long-acting granulocyte colony-stimulating factor, analog for chemotherapy-induced neutropenia. In December 2015, we reached agreement with the U.S. Food and Drug Administration, or the FDA, regarding our Phase 3 Special Protocol Assessment for ROLONTIS. This pivotal Phase 3 study was initiated in the first quarter of 2016 to evaluate ROLONTIS as a treatment for chemotherapy-induced neutropenia. We announced in February 2018 that the top line results of this study met the non-inferiority of ROLONTIS to pegfilgrastim endpoint in the Duration of Severe Neutropenia, or DSN, across all four cycles (all p<0.0001). We initiated a second pivotal Phase 3 study and announced in June 2018, that it had also met its primary efficacy endpoint of non-inferiority in DSN between ROLONTIS and pegfilgrastim.
Poziotinib, a novel pan-HER inhibitor under investigation for non-small cell lung cancer treatment:
FUSILEV® injection(“NSCLC”) tumors with either EGFR or HER2 exon-20 insertion mutations. Our clinical development program for poziotinib is focused on four pillars, including previously treated NSCLC, first-line treatment of NSCLC, combination therapy and treatment of other solid tumors with EGFR or HER2 mutations. NSCLC tumors with EGFR or HER2 exon-20 insertion mutations are rare, and have generally not been responsive to other tyrosine kinase inhibitors. Patients with these mutations have a poor prognosis, and available treatment options are limited. Poziotinib, due to its unique chemical structure and characteristics, is believed to inhibit cell growth of EGFR or HER2 exon-20 insertions. In collaboration with The University of Texas MD Anderson Cancer Center (“MD Anderson”), an investigator-sponsored Phase 2 trial was initiated in NSCLC patients with advancedEGFR or HER2 exon-20 mutations. This Phase 2 Study demonstrated high anti-tumor activity for poziotinib in metastatic, colorectal cancerheavily pretreated EGFR exon 20 mutant NSCLC, a group for which no targeted agents have proven to be effective to date. In addition to the MD Anderson study, we have an ongoing pivotal Phase 2 global study with active sites in the U.S., Canada, and to counteract certain side effectsEurope. On January 2, 2019 we announced full enrollment of methotrexate therapy;
ZEVALIN® injectionthe cohort 1 (N=87) for previously treated NSCLC patients with follicular non-Hodgkin’s lymphoma;
FOLOTYN® injection for patientsEGFR exon 20 insertion mutations with relapsed or refractory peripheral T-cell lymphoma, or PTCL;
MARQIBO® injection for patients with Philadelphia chromosome-negative acute lymphoblastic leukemia;sites across the U.S., Europe, and
BELEODAQ® injection for patients with relapsed or refractory PTCL.
We also have ongoing indication expansion studies with several of our marketed products, and a diversified pipeline of product candidates in Phase 2 and Phase 3 clinical studies.
Canada.
Our business strategy is comprisedto further the development of our late stage assets through commercialization and acquire new assets through partnerships or acquisitions. We are focused on moving ROLONTIS through the regulatory process as quickly as possible. Subject to our resubmission of the following initiatives.
MaximizingROLONTIS Biologics License Application and approval by the growth potential ofFDA, we plan to use our five currently-marketed drugs for the treatment of cancer. Our near-term outlook largely depends on sales and marketing successes for our five marketed drugs. It is this “base business” that provides the requisite working capitalpersonnel and expertise to operate our daily operations, and for opportunistic acquisitions and licensing arrangements.
Developing and commercializing drugs for the treatment of cancer within our pipeline. Our focus is on drugslaunch ROLONTIS in the late-stagesUnited States, while we evaluate partnership opportunities in other geographies. We are currently evaluating poziotinib in a number of development. We strive to timely complete clinical studies that are actively enrolling patients. Top-line results from the first of these studies are expected in orderthe fourth quarter of 2019. We are also looking to obtain regulatory approval expeditiously. Upon obtaining regulatory approval, our sales, marketing and medical affairs functions educate physicians on the safety and effectiveness of the drug in treating cancer patients for the approved indication(s).
Expandingexpand our pipeline through acquisitions or partnerships of development-stage andor commercial-stage drugs, while also pursuing out-licensing opportunities. We are constantly seeking strategic opportunitiesassets that would complement our current productexisting portfolio. We will continue to explore collaborations with third parties for cancer drugs that are in the clinical trial phase of development, as well as the acquisition of the rights to cancer drugs that have significant growth potential. To maximize revenue potential, we also pursue strategic out-license opportunities for our drugs in specific territories.
Corporate Information
Spectrum Pharmaceuticals, Inc. is a Delaware corporation that was originally incorporated in Colorado as Americus Funding Corporation in December 1987, became NeoTherapeutics, Inc. in August 1996, was reincorporated in Delaware in June 1997, and was renamed Spectrum Pharmaceuticals, Inc. in December 2002. More comprehensive information about our products and us is available through our website at www.sppirxwww.sppirx.com.com.. The information on our website is not incorporated by reference into this prospectus. Our principal executive offices are located at 11500 South Eastern Avenue, Suite 240, Henderson, Nevada 89052.89052, and our telephone number is (702) 835-6300.
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RISK FACTORS
BeforeInvestment in our securities involves risks. Prior to making an investmenta decision about investing in our securities, you should consider carefully considerall of the risks described under “Risk Factors”information included in and incorporated by reference or deemed to be incorporated by reference in this prospectus or the applicable prospectus supplement, including the risk factors incorporated by reference herein from our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019, as updated by annual, quarterly and other reports and documents we file with the SEC after the date of this prospectus and that are incorporated by reference herein or in the applicable prospectus supplement and in our most recent Annual Report on Form 10-K, or any updates infree writing prospectus. Each of these risk factors could have a material adverse effect on our Quarterly Reports on Form 10-Q, or Current Report on Form 8-K we file after the filing of this prospectus together with all of the other information appearing in this prospectus or incorporated by reference into this prospectus and any applicable prospectus supplement, in light of your particular investment objectives and financial circumstances. Our business, financial condition or results of operations, could be materially adversely affected byfinancial position or cash flows, which may result in the loss of all or part of your investment. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations. If any of these risks. Therisks actually occur, our business and financial results could be harmed. In that case, the trading price of our common stock or other securities could decline due to anydecline. To the extent a particular offering implicates additional known material risks, we will include a discussion of thesethose risks and you may lose all or part of your investment.in the applicable prospectus supplement.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference into this prospectus containscontain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the success, safety and efficacy of our drug products, product approvals, product sales, revenues, development timelines, product acquisitions, liquidity and capital resources and trends, and other statements containing forward-looking words, such as, “believes,” “may,” “could,” “would,” “will,” “expects,” “intends,” “estimates,” “anticipates,” “plans,” “seeks,” or “continues” or the negative thereof or variation thereon or similar terminology (although not all forward-looking statements contain these words). Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to our management. Readers should not put undue reliance on these forward-looking statements. Forward-looking statements are inherently subject tobecause they involve known and unknown risks, uncertainties and uncertainties,other factors, some of which cannot be predicted or quantified; therefore,are beyond our control. These risks, uncertainties and other factors may cause our actual results, may differperformance or achievements to be materially different from those described in anythe anticipated future results, performance or achievements expressed or implied by the forward-looking statements. The risks
Factors that might cause these differences include the following:
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| • | our ability to advance development and commercialization of our two late-stage pipeline assets, poziotinib and ROLONTIS®; |
the uncertainties inherent in new product development, including clinical trial results and uncertainties include those notedadditional analysis of existing clinical data;
the possibility that our existing and new drug candidates may not ultimately prove to be safe or effective;
the possibility that our existing and new applications to the FDA and other regulatory agencies may not receive approval in a timely manner or at all;
the possibility that our SEC filingsexisting and new drug candidates, if approved, may not be more effective, safer or any applicable prospectus supplement.more cost efficient than competing drugs;
our dependence on third parties for clinical trials, manufacturing, distribution and quality control; and
the expected results resulting from the divestiture of our hematology/oncology products.
We urge you to consider these factors carefully in evaluating the forward-looking statements contained in this prospectus and any prospectus supplement. All subsequent written or oral forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this prospectus are made only as of the date of this prospectus. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent that we are required to do so by law.
USE OF PROCEEDS
Unless we indicate otherwise in the applicable prospectus supplement, we anticipate that the net proceeds from the sale of the securities offered from time to time hereby will be used for general corporate purposes, including, without limitation, salesresearch and marketingdevelopment and clinical development costs to support the advancement of our in-development drug candidates, activities clinical development,in connection with the launch of our in-development drug candidates, including hiring and building inventory supply, making acquisitions of assets, businesses, companies or securities, capital expenditures and for working capital. When a particular series of securities is offered, the related prospectus supplement will set forth our intended use of the net proceeds we receive from the sale of the securities. Pending the application of the net proceeds, we may invest the proceeds in short-term, interest-bearing instruments or other investment-grade securities.
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of earnings to fixed charges for the periods indicated:
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| | Nine Months Ended | | Year Ended December 31, |
| | September 30, 2015 | | 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
| Ratio of earnings available to cover fixed charges | (1) | | (1) | | (1) | | 102 | | 176 | | (1) |
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(1) | Earnings have been inadequate to cover fixed charges. The dollar amount (in thousands) of the coverage deficiency in the nine months ended September 30, 2015 was approximately $46,595, and was approximately $43,533, $36,636 and $48,887 for the years 2014, 2013, and 2010, respectively. |
The ratios of earnings to fixed charges were computed by dividing earnings by fixed charges. For this purpose, earnings include pre-tax loss before fixed charges included in the determination of pre-tax loss. Fixed charges consist of interest costs, whether expensed or capitalized, the amortization of debt discount and issuance costs, and the interest factor of operating rental expense.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
The following table sets forth our ratio of earnings to combined fixed charges and preferred stock dividends for the periods indicated:
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| | Nine Months Ended | | Year Ended December 31, |
| | September 30, 2015 | | 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
| Ratio of earnings to combined fixed charges and preferred share dividends(2) | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
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(2) | For the periods indicated in the table above, we had no outstanding shares of preferred stock with required dividend payments. Therefore, the ratios of earnings to combined fixed charges and dividends are identical to the ratios presented in preceding table titled “Ratio of Earnings to Fixed Charges.” |
DESCRIPTION OF CAPITAL STOCK WE MAY OFFER
General
Our authorized capital stock consists of 175,000,000300,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share.
The following description of our common stock and preferred stock, together with the additional information included in any applicable prospectus supplements or related free writing prospectuses, summarizes the material terms and provisions of these types of securities, but it is not complete. For the complete terms of our common stock and preferred stock, please refer to our amendedrestated certificate of incorporation and our third amended and restated bylaws that are incorporated by reference into the registration statement which includes this prospectus and, with respect to preferred stock, any certificate of designation that we may file with the SEC for a series of preferred stock we may designate, if any.
We will describe in a prospectus supplement or related free writing prospectuses, the specific terms of any common stock or preferred stock we may offer pursuant to this prospectus. If indicated in a prospectus supplement, the terms of such common stock or preferred stock may differ from the terms described below.
Common Stock
As of December 23, 2015,April 2, 2019, there were 68,184,720111,835,624 shares of common stock outstanding. The holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. The holders of common stock are not entitled to cumulative voting rights with respect to the election of directors, and as a consequence, minority stockholders will not be able to elect directors on the basis of their votes alone.
Subject to preferences that may be applicable to any then outstanding shares of preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available therefor. In the event of a liquidation, dissolution or winding up of us, holders of the common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any then outstanding shares of preferred stock. Holders of common stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to our common stock. All outstanding shares of common stock are, and all shares of common stock to be issued under this prospectus will be, fully paid and non-assessable. The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any of our outstanding preferred stock.
Listing
Our common stock is listed under the symbol “SPPI” on the NASDAQ.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
Dividends
We have not declared any cash dividends on our common stock since 2012 and we do not anticipate paying any cash dividends on our common stock in the foreseeable future.
Stockholder Rights PlanAgreement
On November 29, 2010, our board of directors approved a stockholder rights agreement, effective December 13, 2010, we adopted aor the Stockholder Rights Plan pursuantAgreement. A stockholder rights agreement is designed to which we have distributed rightsdeter coercive, unfair, or inadequate takeovers and other abusive tactics that might be used in an attempt to purchase unitsgain control of our Series B Junior Participating Preferred Stock.company. The rights become exercisable uponStockholder Rights Agreement
will not prevent takeovers at a full and fair price, but rather is designed to deter coercive takeover tactics and to encourage anyone attempting to acquire our company to first negotiate with our board of directors.
On March 27, 2018, we entered into a Second Amendment to the earlier of ten days after a person or group of affiliated or associated persons has acquired 15% or more of the outstanding shares of our common stock or ten business days after a tender offer has commenced that would result in a person or group beneficially owning 15% or more of our outstanding common stock, other than pursuant to a transaction approved in advance by our Board of Directors. The description and terms of the rights are set forth in aStockholder Rights Agreement between us and ComputerShare Trust Company, N.A.,which had the effect of suspending the Stockholders Rights Agreement as rights agent.of March 30, 2018, though it will expire under its terms on December 13, 2020.
Preferred Stock
We are authorized to issue a total of 5,000,000 shares of preferred stock. Of the 5,000,000 authorizedAs of April 2, 2019, there were no shares of preferred stock we are authorized to issue 1,500,000 shares of Series B Junior Participating Preferred Stock and 2,000 shares of Series E Convertible Voting Preferred Stock. As of December 23, 2015, 20 shares of Series E Convertible Voting Preferred Stock were issued and outstanding. These shares are convertible into 40,000 shares of common stock. There are no dividends payable on the Series E Convertible Voting Preferred Stock.
Each share of Series E Convertible Voting Preferred Stock has a liquidation preference equal to 120% of the stated value of $10,000 plus any declared and unpaid dividends on such share, subject to adjustment in certain circumstances.
Holders of our Series E Convertible Voting Preferred Stock have full voting rights and powers equal to the voting rights and powers of holders of common stock, and are entitled to the number of votes equal to the number of shares of common stock into which their shares of Series E Convertible Voting Preferred Stock can be converted. Pursuant to the Certificate of Designation for the Series E Convertible Voting Preferred Stock, the number of shares of our common stock that may be acquired by any holder of Series E Convertible Voting Preferred Stock upon any conversion of the preferred stock, or that shall be entitled to voting rights, is limited to the extent necessary to ensure that following such conversion, the number of shares of our common stock then beneficially owned by such holder and any other person or entities whose beneficial ownership of common stock would be aggregated with the holder’s for purposes of the Exchange Act does not exceed 4.95% of the total number of shares of our common stock then outstanding.
Preferred stock may be issued from time to time, in one or more series, as authorized by the board of directors.directors, without stockholder approval. The prospectus supplement relating to the preferred shares offered thereby will include specific terms of any preferred shares offered, including, if applicable:
the title of the shares of preferred stock;
the number of shares of preferred stock offered, the liquidation preference per share and the offering price of the shares of preferred stock;
the dividend rate(s), period(s) and/or payment date(s) or method(s) of calculation thereof applicable to the shares of preferred stock;
whether the shares of preferred stock are cumulative or not and, if cumulative, the date from which dividends on the shares of preferred stock shall accumulate;
the procedures for any auction and remarketing, if any, for the shares of preferred stock;
the provision for a sinking fund, if any, for the shares of preferred stock;
the provision for redemption or repurchase, if applicable, and any restrictions on our ability to exercise those redemption and repurchase rights of the shares of preferred stock;
any listing of the shares of preferred stock on any securities exchange;
the terms and conditions, if applicable, upon which the shares of preferred stock will be convertible into common shares, including the conversion price (or manner of calculation thereof);
a discussion of federal income tax considerations applicable to the shares of preferred stock;
the relative ranking and preferences of the shares of preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of our affairs;
any limitations on issuance of any series or class of shares of preferred stock ranking senior to or on a parity with such series or class of shares of preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of our affairs;
any other specific terms, preferences, rights, limitations or restrictions of the shares of preferred stock; and
any voting rights of such preferred stock.
The transfer agent and registrar for any series or class of preferred stock will be set forth in the applicable prospectus supplement.
Possible Anti-Takeover Provisions
Our amended certificateEffects of incorporation and amended and restated bylaws contain provisions that, together with the ownership position of the officers, directors and their affiliates, could discourage potential takeover attempts and make it more difficult for stockholders to change management, which could adversely affect the market price of our common stock.
Our amended certificate of incorporation limits the extent to which our directors are personally liable to usDelaware Law and our stockholders, to the fullest extent permitted byCharter Documents
Provisions of the Delaware General Corporation Law, or DGCL.DGCL, our restated certificate of incorporation, and our third amended and restated bylaws, could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that our board of directors may consider inadequate and to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.
Delaware Anti-Takeover Statute
We are subject to Section 203 of the DGCL, an anti-takeover statute. In general, Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the time the person became an interested stockholder, unless the business combination or the acquisition of shares that resulted in a stockholder becoming an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns (or within three years prior to the determination of interested stockholder status did own) 15% or more of a corporation’s voting stock. The inclusionexistence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our board of directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by our stockholders.
Election and Removal of Directors
Our board of directors is elected annually by all holders of our capital stock. The stockholders may nominate one or more persons for election as directors at an annual meeting of stockholders, but only if written notice of such stockholder’s intent to make such nomination or nominations has been received by the Secretary of the Company not less than ninety (90) nor more than one hundred twenty (120) days prior to the first anniversary of the preceding year’s annual meeting of stockholders. Any vacancy on the board of directors resulting from death, resignation, removal or otherwise or newly created directorships may be filled by the vote of the majority of directors then in office, although less than a quorum, or by a sole remaining director.
Amendment
The affirmative vote of a majority of the entire board of directors may amend and repeal the bylaws. The bylaws may be altered, amended or repealed, and new bylaws may be adopted, at any annual meeting of the stockholders (or at any special meeting thereof duly called for that purpose) by a majority of the combined voting power of the then outstanding shares of capital stock of all classes and series of the Company entitled to vote generally in the election of directors, voting as a single class, provided that, in the notice of any such special meeting, notice of such purpose shall be given.
Size of Board and Vacancies
Pursuant to our restated certificate of incorporation, may reduceand our third amended and restated bylaws, our board of directors has the likelihoodexclusive right to fix the size of derivative litigation against directorsthe board and may discourageto fill any vacancies resulting from death, resignation, disqualification or deter stockholders or managementremoval as well as any newly created directorships arising from bringing a lawsuit against directors for breachan increase in the size of their duty of care.the board.
Special Stockholder Meetings
Our third amended and restated bylaws provide that special meetings of stockholders can be called only by the board of directors, the chairman of the board of directors or the chief executive officer. Stockholders are not permitted to call a special meeting and cannot require the board of directors to call a special meeting. There is no right of stockholders to act by written consent without a meeting, unless the consent is unanimous.
Stockholder Action by Unanimous Written Consent
Any vacancy on the board of directors resulting from death, resignation, removal or otherwise or newly created directorshipsaction which may be filled onlytaken at any annual or special meeting of stockholders, may be taken without a meeting and without prior notice, if a consent in writing or by voteelectronic communication, setting forth the action so taken, is given by the holders of all of the majorityoutstanding shares entitled to vote thereon.
Requirements for Advance Notification of directors then in office, or by a sole remaining director. Stockholder Nominations and Proposals
Our third amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors except forother than nominations made by or at the direction of theour board of directors or a committee of our board of directors.
No Cumulative Voting
The DGCL provides that stockholders are denied the board.
In additionright to cumulate votes in the election of directors unless our rights plan, our amended certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation does not provide for cumulative voting.
Authorized but Unissued Shares
Our authorized but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval. We may use additional shares for a variety of purposes, including future public offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued shares of undesignated preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of us or our stockholders, our board of directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquirer, stockholder or stockholder group. The rights of holders of our common stock described above will be subject to, and may be adversely affected by, the rights of any preferred stock that we may designate and issue in the future. The issuance of shares of undesignated preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.
Director Liability
Our third amended and restated bylaws certain provisions of Delaware law may makelimit the acquisition of the company by tender offer, a proxy contest or otherwise, or the removal ofextent to which our officersdirectors are personally liable to us and directors, more difficult. For example, we are subjectour stockholders, to the “business combination” statute offullest extent permitted by the DGCL. Section 203The inclusion of this provision in our third amended and restated bylaws may reduce the DGCL prohibits certain publicly-held Delaware corporationslikelihood of derivative litigation against directors and may discourage or deter stockholders or management from engaging inbringing a business combination with an interested stockholderlawsuit against directors for a periodbreach of three years following the time such person became an interested stockholder unless the business combination is approved in a specified manner. Generally, an interested stockholder is a person who, together with its affiliates and associates, owns 15% or moretheir duty of the corporation’s voting stock, or is affiliated with the corporation and owns or owned 15% of the corporation’s voting stock within three years before the business combination.care.
DESCRIPTION OF DEBT SECURITIES WE MAY OFFER
ThisThe following description, together with the additional information we include in any applicable prospectus describessupplements or free writing prospectuses, summarizes the generalmaterial terms and provisions of ourthe debt securities. Whensecurities that we may offer under this prospectus. We may issue debt securities, in one or more series, as either senior or subordinated debt or as senior or subordinated convertible debt. While the terms we have summarized below will apply generally to any future debt securities we may offer under this prospectus, we will describe the particular terms of any debt securities that we may offer in more detail in the applicable prospectus supplement or free writing prospectus. The terms of any debt securities we offer under a prospectus supplement may differ from the terms we describe below. Unless the context requires otherwise, whenever we refer to sellthe “indentures,” we also are referring to any supplemental indentures that specify the terms of a particular series of debt securities.
We will issue any senior debt securities under the senior indenture that we will provideenter into with the specific terms oftrustee named in the series in a prospectus supplement orsenior indenture. We will issue any related free writing prospectuses relating to the series, including any pricing supplement, and such terms may differ from those described below. Accordingly, for a description of the terms of any series ofsubordinated debt securities you must refer tounder the prospectus supplementsubordinated indenture and any free writing prospectuses relating tosupplemental indentures that series andwe will enter into with the description of the debt securities in this prospectus. To the extent the information containedtrustee named in the prospectus supplement differs from this summary description, you should rely on the information in the prospectus supplement.
The debt securities offered by this prospectus will be issued under an indenture between us and the trustee, for one or more series of debt securities designated in the applicable prospectus supplement. The indenture is subject to, and governed by, the Trust Indenture Act of 1939, as amended. We incorporate by reference the form of indenture as an exhibit to the registration statement of which this prospectus forms a part and you should read the indenture carefully for the provisions that may be important to you.subordinated indenture. We have summarized selected portionsfiled forms of the indenture below. The summary is not complete. Terms used in the summary and not defined in this prospectus have the meanings specified in the indenture. The indenture which is filedthese documents as an exhibitexhibits to the registration statement, of which this prospectus is a part, may not haveand supplemental indentures and forms of debt securities containing the same terms as an indenture entered into in connection with the issuance of the debt securities and therefore you should refer to the prospectus supplement for the description of any issued debt securities as well as the indenture governing such securities whichbeing offered will be filed as exhibits to the registration statement of which this prospectus is a part or will be incorporated by reference from reports that we file with the SEC at such timeSEC.
The indentures will be qualified under the Trust Indenture Act of 1939, as amended, or the Trust Indenture Act. We use the term “trustee” to refer to either the trustee under the senior indenture or the trustee under the subordinated indenture, as applicable.
The following summaries of material provisions of the senior debt securities, the subordinated debt securities and the indentures are subject to, and qualified in their entirety by reference to, all of the provisions of the indenture and any supplemental indentures applicable to a particular series of debt securities. We urge you to read the applicable prospectus supplements and any related free writing prospectuses related to the debt securities are issued.
General
Wethat we may offer under this prospectus, up to $250,000,000 in aggregate principal amount of secured or unsecured debt securities, or if debt securities are issued at a discount, or in a foreign currency or composite currency, such principal amount as may be sold for an initial public offering price of up to $250,000,000. The debt securities may be either senior debt securities, senior subordinated debt securities or subordinated debt securities.
We can issue an unlimited amount of debt securities underwell as the complete indenture that contains the terms of the debt securities. Except as we may be in one or more series withotherwise indicate, the same or various maturities, at par, at a premium or at a discount. terms of the senior indenture and the subordinated indenture are identical.
General
The terms of each series of debt securities will be established by or pursuant to a resolution of our board of directors and detailedset forth or determined in the manner provided in a board of directors’ resolution, an officers’ certificate or by a supplemental indenture.
Debt securities may be issued in separate series without limitation as to aggregate principal amount. We may specify a maximum aggregate principal amount for the debt securities of any series. We will set forthdescribe in athe applicable prospectus supplement (including any pricing supplement) and any free writing prospectuses relating to anythe terms of the series of debt securities being offered, including:
the initial offering price, title;
the aggregate principal amount being offered, and if a series, the total amount authorized and the following terms of the debt securities, as applicable:
the title of the debt securities;
the price or prices (expressed as a percentage of the aggregate principal amount) at which we will sell the debt securities;total amount outstanding;
any limit on the aggregate principal amount that may be issued;
whether or not we will issue the series of debt securities in global form, and, if so, the debt securities;terms and who the depositary will be;
the date or dates on whichmaturity date;
whether and under what circumstances, if any, we will pay the principaladditional amounts on any debt securities held by a person who is not a U.S. person for tax purposes, and whether we can redeem the debt securities;securities if we have to pay such additional amounts;
the annual interest rate, or rates (whichwhich may be fixed or variable) per annumvariable, or the method used to determinefor determining the rate or rates (including any commodity, commodity index, stock exchange index or financial index) at which the debt securities will bear interest,and the date or dates from which interest will begin to accrue, the date or dates on which interest will commence and be payable and anythe regular record datedates for the interest payable on any interest payment date;dates or the method for determining such dates;
the placewhether or places where the principal of, premium, and interest onnot the debt securities will be payable;secured or unsecured, and the terms of any secured debt;
the terms of the subordination of any series of subordinated debt;
the place where payments will be payable;
restrictions on transfer, sale or other assignment, if any;
our right, if any, to defer payment of interest and conditions uponthe maximum length of any such deferral period;
the date, if any, after which, and the price at which, we may, at our option, redeem the debt securities;
any obligation we have to redeem or purchase theseries of debt securities pursuant to any optional or provisional redemption provisions and the terms of those redemption provisions;
provisions for a sinking fund purchase or other analogous provisions or atfund, if any, including the option of a holder of debt securities;
the datesdate, if any, on which, and the price or prices at which we will repurchase the debt securitiesare obligated, pursuant thereto or otherwise, to redeem, or at the holder’s option, ofto purchase, the holdersseries of debt securities and the currency or currency unit in which the debt securities are payable;
provisions relating to modification of the terms of the security or the rights of the security holder;
whether the indenture will restrict our ability or the ability of our subsidiaries to:
incur additional indebtedness;
issue additional securities;
create liens;
pay dividends or make distributions in respect of our capital stock or the capital stock of our subsidiaries;
redeem capital stock;
place restrictions on our subsidiaries’ ability to pay dividends, make distributions or transfer assets;
make investments or other detailed terms andrestricted payments;
sell, transfer or otherwise dispose of assets;
enter into sale-leaseback transactions;
engage in transactions with stockholders or affiliates;
issue or sell stock of our subsidiaries; or
effect a consolidation or merger;
whether the indenture will require us to maintain any interest coverage, fixed charge, cash flow-based, asset-based or other financial ratios;
information describing any book-entry features;
the applicability of the provisions in the indenture on discharge;
whether the debt securities are to be offered at a price such that they will be deemed to be offered at an “original issue discount” as defined in paragraph (a) of these repurchase obligations;Section 1273 of the Internal Revenue Code of 1986, as amended;
the denominations in which we will issue the series of debt securities, will be issued, if other than denominations of $1,000 and any integral multiple thereof;
whether the currency of payment of debt securities will be issued in the form of certificated debt securities or global debt securities;
the portion of principal amount of the debt securities payable upon declaration of acceleration of the maturity date, if other than U.S. dollars and the principal amount;manner of determining the equivalent amount in U.S. dollars; and
the currencyany other specific terms, preferences, rights or limitations of, denomination of the debt securities;
the designation of the currency, currencies or currency units in which payment of principal of, premium and interestrestrictions on, the debt securities, will be made;
if payments of principal of, premium or interest on the debt securities will be made in one or more currencies or currency units other than that or those in which the debt securities are denominated, the manner in which the exchange rate with respect to these payments will be determined;
the manner in which the amounts of payment of principal of, premium or interest on the debt securities will be determined, if these amounts may be determined by reference to an index based on a currency or currencies other than that in which the debt securities are denominated or designated to be payable or by reference to a commodity, commodity index, stock exchange index or financial index;
including any provisions relating to any security provided for the debt securities;
any subordination provisions relating to the debt securities;
any addition to or change in theadditional events of default described in this prospectus or in the indenturecovenants provided with respect to the debt securities, and any changeterms that may be required by us or advisable under applicable laws or regulations.
U.S. federal income tax consequences applicable to debt securities sold at an original issue discount will be described in the acceleration provisions described in thisapplicable prospectus supplement. In addition, U.S. federal income tax or in the indenture with respectother consequences applicable to the debt securities;
any addition to or change in the covenants described in this prospectus or in the indenture with respect to the debt securities;
any other terms of the debt securities which are denominated in a currency or currency unit other than U.S. dollars may modifybe described in the applicable prospectus supplement.
Conversion or delete any provision of the indenture as it applies to that series; and
any depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to the debt securities.
Exchange Rights
We may issue debt securities that are exchangeable and/or convertible into shares of our common stock or preferred stock. The terms, if any, on which the debt securities may be exchanged for and/or converted will be set forth in the applicable prospectus supplement and any related free writing prospectuses. Suchthe terms under which a series of debt securities may be convertible into or exchangeable for our common stock, our preferred stock or other securities (including securities of a third party). We will include provisions foras to whether conversion eitheror exchange is mandatory, at the option of the holder or at our option, inoption. We may include provisions pursuant to which case the number of shares of our common stock, our preferred stock or other securities to be received by(including securities of a third party) that the holders of debt securities would be calculated as of a time and in the manner stated in the prospectus supplement and any related free writing prospectuses.
We may issue debt securities that provide for an amount less than their stated principal amount to be due and payable upon declaration of acceleration of their maturity pursuant to the terms of the indenture. We will provide you with information on the federal income tax considerations and other special considerations applicable to any of these debt securities in the applicable prospectus supplement and any related free writing prospectuses.
If we denominate the purchase price of any of the debt securities in a foreign currency or currencies or a foreign currency unit or units, or if the principal of and any premium and interest on any series of debt securities is payable in a foreign currencyreceive would be subject to adjustment.
Consolidation, Merger or currencies or a foreign currency unit or units, we will provide you with information on the restrictions, elections, general tax considerations, specific terms and other information with respect to that issue of debt securities and such foreign currency or currencies or foreign currency unit or units in the applicable prospectus supplement and any related free writing prospectuses.
Transfer and Exchange
Each debt security will be represented by either one or more global securities registered in the name of The Depository Trust Company, as depositary, or a nominee of the depositary (we will refer to any debt security represented by a global debt security as a book-entry debt security), or a certificate issued in definitive registered form (we will refer to any debt security represented by a certificated security as a certificated debt security), as described in the applicable prospectus supplement and any related free writing prospectuses. Except as described under “Global Debt Securities and Book-Entry System” below, book-entry debt securities will not be issuable in certificated form.
Certificated Debt Securities. You may transfer or exchange certificated debt securities at the trustee’s office or paying agencies in accordance with the terms of the indenture. No service charge will be made for any transfer or exchange of certificated debt securities, but we may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with a transfer or exchange.
You may transfer certificated debt securities and the right to receive the principal of, premium and interest on, certificated debt securities only by surrendering the old certificate representing those certificated debt securities and either we or the trustee will reissue the old certificate to the new holder or we or the trustee will issue a new certificate to the new holder.
Global Debt Securities and Book-Entry System. Each global debt security representing book-entry debt securities will be deposited with, or on behalf of, the depositary, and registered in the name of the depositary or a nominee of the depositary.
We will require the depositary to agree to follow the following procedures with respect to book-entry debt securities.
Ownership of beneficial interests in book-entry debt securities will be limited to persons that have accounts with the depositary for the related global debt security, whom we refer to as participants, or persons that may hold interests through participants. Upon the issuance of a global debt security, the depositary will credit, on its book-entry registration and transfer system, the participants’ accounts with the respective principal amounts of the book-entry debt securities represented by the global debt security beneficially owned by such participants. The accounts to be credited will be designated by any dealers, underwriters or agents participating in the distribution of the book-entry debt securities. Ownership of book-entry debt securities will be shown on, and the transfer of the ownership interests will be effected only through, records maintained by the depositary for the related global debt security (with respect to interests of participants) and on the records of participants (with respect to interests of persons holding through participants). The laws of some states may require that certain purchasers of securities take physical delivery of such securities in definitive form. These laws may impair the ability to own, transfer or pledge beneficial interests in book-entry debt securities.
So long as the depositary for a global debt security, or its nominee, is the registered owner of that global debt security, the depositary or its nominee, as the case may be, will be considered the sole owner or holder of the book-entry debt securities represented by such global debt security for all purposes under the indenture. Except as described herein, beneficial owners of book-entry debt securities will not be entitled to have securities registered in their names, will not receive or be entitled to receive physical delivery of a certificate in definitive form representing securities and will not be considered the owners or holders of those securities under the indenture. Accordingly, to exercise any rights of a holder under the indenture, each person beneficially owning book-entry debt securities must rely on the procedures of the depositary for the related global debt security and, if that person is not a participant, on the procedures of the participant through which that person owns its interest.
We will make payments of principal of, and premium and interest on, book-entry debt securities to the depositary or its nominee, as the case may be, as the registered holder of the related global debt security. We, the trustee and any other agent of ours or agent of the trustee will not have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a global debt security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
We expect that the depositary, upon receipt of any payment of principal of, premium or interest on, a global debt security, will immediately credit participants’ accounts with payments in amounts proportionate to the respective amounts of book-entry debt securities held by each participant as shown on the records of the depositary. We also expect that payments by participants to owners of beneficial interests in book-entry debt securities held through those participants will be governed by standing customer instructions and customary practices, as is now the case with the securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of those participants.
We will issue certificated debt securities in exchange for each global debt security if the depositary is at any time unwilling or unable to continue as depositary or ceases to be a clearing agency registered under the Exchange Act, and a successor depositary registered as a clearing agency under the Exchange Act is not appointed by us within 90 days. In addition, we may at any time and in our sole discretion determine not to have any of the book-entry debt securities of any series represented by one or more global debt securities and, in that event, we will issue certificated debt securities in exchange for the global debt securities of that series. Global debt securities will also be exchangeable by the holders for certificated debt securities if an event of default with respect to the book-entry debt securities represented by those global debt securities has occurred and is continuing. Any certificated debt securities issued in exchange for a global debt security will be registered in such name or names as the depositary shall instruct the trustee. We expect that such instructions will be based upon directions received by the depositary from participants with respect to ownership of book-entry debt securities relating to such global debt security.
We have obtained the foregoing information in this section concerning the depositary and the depositary’s book-entry system from sources we believe to be reliable. We take no responsibility for the depositary’s performance of its obligations under the rules and regulations governing its operations.
No Protection in the Event of a Change in ControlSale
Unless we provide otherwise in the applicable prospectus supplement or any related free writing prospectuses,applicable to a particular series of debt securities, the debt securitiesindentures will not contain any provisions which may afford holders of the debt securities protection in the event we have a
change in controlcovenant that restricts our ability to merge or in the event of a highly leveraged transaction (whetherconsolidate, or not such transaction results in a change in control) that could adversely affect holders of debt securities.
Covenants
We will describe in the applicable prospectus supplement and any related free writing prospectuses any restrictive covenants applicable to an issue of debt securities.
Consolidation, Merger and Sale of Assets
We may not consolidate with or merge into, orsell, convey, transfer or leaseotherwise dispose of all or substantially all of our properties andassets. However, any successor to or acquiror of such assets to, any person, such person to be referred to as a “successor person”, and we may not permit any person to merge into, or convey, transfer or lease its properties and assets substantially as an entirety to us, unless:
the successor person is a corporation, partnership, trust or other entity organized and validly existingmust assume all of our obligations under the laws of any U.S. domestic jurisdiction and expressly assumes our obligations onindentures or the debt securities, and underas appropriate. If the indenture;
immediately after giving effectdebt securities are convertible into or exchangeable for our other securities or securities of other entities, the person with whom we consolidate or merge or to whom we sell all of our property must make provisions for the transaction, no eventconversion of default, and no event which, after noticethe debt securities into securities that the holders of the debt securities would have received if they had converted the debt securities before the consolidation, merger or lapse of time, or both, would become an event of default, shall have occurred and be continuing under the indenture; and
certain other conditions are met.
sale.
Events of Default under the Indenture
“EventUnless we provide otherwise in the prospectus supplement applicable to a particular series of default” means,debt securities, the following are events of default under the indentures with respect to any series of debt securities any of the following:that we may issue:
default in the payment of anyif we fail to pay interest upon any debt security of that series when it becomes due and payable and continuance of that defaultour failure continues for a period of 3090 days (unlessand the entire amount of suchtime for payment is deposited by us withhas not been extended;
if we fail to pay the trusteeprincipal, premium or with a paying agent prior to the expiration of the 30-day period);
default in thesinking fund payment, of principal of or premium onif any, debt security of that series when due and payable;payable and the time for payment has not been extended;
default in the deposit of any sinking fund payment, when and as due in respect of any debt security of that series;
default in the performanceif we fail to observe or breach ofperform any other covenant or warranty by uscontained in the indenture (otherdebt securities or the indentures, other than a covenant or warranty that has been included in the indenture solely for the benefit of aspecifically relating to another series of debt securities, other than that series), which defaultand our failure continues uncured for a period of 6090 days after we receive written
notice from the trustee or we and the trustee receive written notice from the holders of at least a majority25% in aggregate principal amount of the outstanding debt securities of that series as provided in the indenture;
certain events of our bankruptcy, insolvency or reorganization;applicable series; and
any other event of default provided with respect to debt securities of that series that is described in the applicable prospectus supplement accompanying this prospectus.
No event of default with respect to a particular series of debt securities (except as to certainif specified events of bankruptcy, insolvency or reorganization) necessarily constitutes an eventreorganization occur.
We will describe in each applicable prospectus supplement any additional events of default with respectrelating to any otherthe relevant series of debt securities. An event of default may also be an event of default under our bank credit agreements or other debt securities in existence from time to time and under certain guaranties by us of any subsidiary indebtedness. In addition, certain events of default or an acceleration under the indenture may also be an event of default under some of our other indebtedness outstanding from time to time.
If an event of default with respect to debt securities of any series at the time outstanding occurs and is continuing, (otherother than certain eventsan event of our bankruptcy, insolvency or reorganization), thendefault specified in the last bullet point above, the trustee or the holders of not less than a majorityat least 25% in aggregate principal amount of the outstanding debt securities of that series, may, by written notice to us (andin writing, and to the trustee if notice is given by such holders, may declare the holders), declare to beunpaid principal, premium, if any, and accrued interest, if any, due and payable immediatelyimmediately. If an event of default arises due to the occurrence of certain specified bankruptcy, insolvency or reorganization events, the unpaid principal, (or,premium, if the debt securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of that series) ofany, and accrued and unpaid interest, if any, of alleach issue of debt securities of that series. In the case of an event of default resulting from certain events of bankruptcy, insolvency or reorganization, the principal (or such specified amount) of and accrued and unpaid interest, if any, of allthen outstanding debt securities will become andshall be immediately due and payable without any declarationnotice or other act byaction on the part of the trustee or any holder of outstanding debt securities. At any time after a declaration of acceleration with respect to debt securities of any series has been made, but before the trustee has obtained a judgment or decree for payment of the money due, theholder.
The holders of a majority in principal amount of the outstanding debt securities of thatan affected series may subjectwaive any default or event of default with respect to our having paidthe series and its consequences, except defaults or
deposited with the trustee a sum sufficient to pay overdue interest and principal which has become due other than by acceleration and certain other conditions, rescind and annul such acceleration if all events of default other than the non-paymentregarding payment of accelerated principal, and interest,premium, if any, with respect to debt securitiesor interest, unless we have cured the default or event of that series, have been cured or waived as provideddefault in accordance with the indenture. For information as toAny such waiver shall cure the default or event of defaults see the discussion under “Modification and Waiver” below. We refer youdefault.
Subject to the applicable prospectus supplement and any free writing prospectuses relating to any series of debt securities that are discount securities for the particular provisions relating to acceleration of a portionterms of the principal amount of the discount securities upon the occurrence ofapplicable indenture, if an event of default under an indenture shall occur and the continuation of an event of default.
The indenture provides thatbe continuing, the trustee will be under no obligation to exercise any of its rights or powers under thesuch indenture at the request or direction of any holder of outstandingthe holders of the applicable series of debt securities, unless such holders have offered the trustee receivesreasonable indemnity or security satisfactory to it against any loss, liability or expense. Subject to certain rights of the trustee, theThe holders of a majority in principal amount of the outstanding debt securities of any series shallwill have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or exercising any trust or power conferred on the trustee, with respect to the debt securities of that series.series, provided that:
Nothe direction so given by the holders is not in conflict with any law or the applicable indenture; and
subject to its duties under the Trust Indenture Act, the trustee need not take any action that might involve it in personal liability or might be unduly prejudicial to the holders not involved in the proceeding.
The indentures provide that if an event of default has occurred and is continuing, the trustee will be required in the exercise of its powers to use the degree of care that a prudent person would use in the conduct of its own affairs. The trustee, however, may refuse to follow any direction that conflicts with law or the indenture, or that the trustee determines is unduly prejudicial to the rights of any other holder of the relevant series of debt securities, or that would involve the trustee in personal liability. Prior to taking any action under the indentures, the trustee will be entitled to indemnification against all costs, expenses and liabilities that would be incurred by taking or not taking such action.
A holder of the debt securitysecurities of any series will have anythe right to institute anya proceeding judicialunder the indentures or otherwise, with respect to the indenture or for the appointment ofappoint a receiver or trustee, or for any remedy under the indenture, unless:to seek other remedies only if:
thatthe holder has previously given written notice to the trustee written notice of a continuing event of default with respect to debt securities of that series; and
the holders of at least a majority25% in aggregate principal amount of the outstanding debt securities of that series have made a written request and such holders have offered reasonable indemnity to the trustee or security satisfactory to institute suchit against any loss, liability or expense to be incurred in compliance with instituting the proceeding as trustee,trustee; and
the trustee shalldoes not have receivedinstitute the proceeding, and does not receive from the holders of a majority in aggregate principal amount of the outstanding debt securities of that series a direction inconsistent with that request and has failed to institute the proceedingother conflicting directions within 60 days.
Notwithstanding the foregoing, the holder of any debt security will have an absolute and unconditional right to receive payment of the principal of, premium and any interest on that debt security on or after the due dates expressed in that debt security and to institute suit for the enforcement of payment.
The indenture requires us, within 90 days after the end of our fiscal year,notice, request and offer.
These limitations do not apply to furnish to the trustee a certificate as to compliance with the indenture. The indenture provides that the trustee may withhold notice to the holderssuit instituted by a holder of debt securities of any series of any default or event of default (except in payment on any debt securities of that series) with respect to debt securities of that series if it in good faith determines that withholding notice is in the interest of the holders of those debt securities.
Modification and Waiver
We and the trustee may modify and amend the indenture with the consent of the holders of at least a majority in principal amount of the outstanding debt securities of each series affected by the modifications or amendments. We and thetrustee may not make any modification or amendment without the consent of the holder of each affected debt security then outstanding if that amendment will:
change the amount of debt securities whose holders must consent to an amendment or waiver;
reduce the rate of or extend the time for payment of interest (including default interest) on any debt security;
reduce the principal of or premium on or change the fixed maturity of any debt security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation with respect to any series of debt securities;
reduce the principal amount of discount securities payable upon acceleration of maturity;
waive awe default in the payment of the principal, premium, if any, or interest on, the debt securities.
We will periodically file statements with the trustee regarding our compliance with specified covenants in the indentures.
The indentures provide that if a default occurs and is continuing and is actually known to a responsible officer of the trustee, the trustee must mail to each holder notice of the default within 45 days after it occurs, unless such default has been cured. Except in the case of a default in the payment of principal or premium of, or interest on, any debt security (exceptor certain other defaults specified in an indenture, the trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a rescissiontrust committee of accelerationdirectors, or responsible officers of the trustee, in good faith determine that withholding notice is in the best interests of holders of the relevant series of debt securities.
Modification of Indenture; Waiver
Subject to the terms of the indenture for any series of debt securities that we may issue, we and the trustee may change an indenture without the consent of any holders with respect to the following specific matters:
to fix any ambiguity, defect or inconsistency in the indenture;
to comply with the provisions described above under “—Consolidation, Merger or Sale”;
to comply with any requirements of the SEC in connection with the qualification of any indenture under the Trust Indenture Act;
to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms or purposes of issue, authentication and delivery of debt securities, as set forth in such indenture;
to provide for the issuance of, and establish the form and terms and conditions of, the debt securities of any series as provided under “—General,” to establish the form of any certifications required to be furnished pursuant to the terms of the indenture or any series of debt securities, or to add to the rights of the holders of any series of debt securities;
to evidence and provide for the acceptance of appointment hereunder by a successor trustee;
to provide for uncertificated debt securities in addition to or in place of certificated debt securities and to make all appropriate changes for such purpose;
to add such new covenants, restrictions, conditions or provisions for the protection of the holders, and to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an event of default or to surrender any right or power conferred to us in the indenture; or
to change anything that does not materially adversely affect the interests of any holder of debt securities of any series in any material respect; provided that any amendment made solely to conform the provisions of the indenture to the corresponding description of the debt securities contained in the applicable prospectus or prospectus supplement shall be deemed not to adversely affect the interests of the holders of such debt securities; provided further, that in connection with any such amendment we will provide the trustee with an officers’ certificate certifying that such amendment will not adversely affect the rights or interests of the holders of such debt securities.
In addition, under the indentures, the rights of holders of a series of debt securities may be changed by us and the trustee with the written consent of the holders of at least a majority in aggregate principal amount of the then outstanding debt securities of each series that series and a waiver of the payment default that resulted from that acceleration);
make the principal of or premium or interest on any debt security payable in currency other than that statedis affected. However, unless we provide otherwise in the debt security;
make any changeprospectus supplement applicable to certain provisions of the indenture relating to, among other things, the right of holdersa particular series of debt securities, to receivewe and the trustee may only make the following changes with the consent of each holder of any outstanding debt securities affected:
extending the fixed maturity of the series of debt securities;
reducing the principal amount, reducing the rate of or extending the time of payment of the principal of,interest, or reducing any premium and interest on those debt securities, the right
of holders to institute suit for the enforcement of any payment or the right of holders to waive past defaults or to amend the limitations described in this bullet point; or
waive a redemption payment with respect to any debt security or change any of the provisions with respect topayable upon the redemption of any debt securities.securities;
Except for certain specified provisions,reducing the percentage of debt securities, the holders of at least a majority in principalwhich are required to consent to any amendment, supplement, modification or waiver;
changing any of our obligations to pay additional amounts;
reducing the amount of principal of an original issue discount security or any other note payable upon acceleration of the outstanding debt securitiesmaturity thereof;
changing the currency in which any note or any premium or interest is payable;
impairing the right to enforce any payment on or with respect to any note;
adversely changing the right to convert or exchange, including decreasing the conversion rate or increasing the conversion price of, any series may, on behalfsuch note, if applicable;
in the case of the subordinated indenture, modifying the subordination provisions in a manner adverse to the holders of allthe subordinated debt securities;
if the debt securities of that series, waive our compliance with provisions ofare secured, changing the indenture. The holders of a majority in principal amount ofterms and conditions pursuant to which the outstanding debt securities of any series may, on behalf ofare secured in a manner adverse to the holders of all the secured debt securities of that series, waive any past default undersecurities;
reducing the indenture with respect to that series and its consequences, except a defaultrequirements contained in the paymentapplicable indenture for quorum or voting;
changing any of our obligations to maintain an office or agency in the places and for the purposes required by the indentures; or
modifying any of the principal of, premium or any interest on any debt security of that series; provided, however, that the holders of a majorityabove provisions set forth in principal amount of the outstanding debt securities of any series may rescind an acceleration and its consequences, including any related payment default that resulted from the acceleration.this paragraph.
Defeasance of Debt Securities and Certain Covenants in Certain CircumstancesDischarge
Legal Defeasance. TheEach indenture provides that, unlesssubject to the terms of the indenture and any limitation otherwise provided in the prospectus supplement applicable to a particular series of debt securities, provide otherwise, we may elect to be discharged from any and allour obligations inwith respect to one or more series of the debt securities, of any series (exceptexcept for certainspecified obligations, to including obligations to:
register the transfer or exchange of debt securities of the series, to series;
replace stolen, lost or mutilated debt securities of the series, and to series;
maintain paying agencies and certain provisions relating to the treatment of fundsagencies;
hold monies for payment in trust;
recover excess money held by paying agents). We willthe trustee;
compensate and indemnify the trustee; and
appoint any successor trustee.
In order to exercise our rights to be so discharged, upon thewe must deposit with the trustee in trust, of money and/or U.S. government obligations or, in the case of debt securities denominated in a single currency other than U.S. dollars, foreign government obligations (as described at the end of this section), that, through the payment of interest and principal in accordance with their terms, will provide money in an amount sufficient in the opinion of a nationally recognized firm of independent public accountants to pay all the principal of, and discharge each installment of principal,any premium and interest on, the debt securities of the series on the dates payments are due.
Form, Exchange and Transfer
We will issue the debt securities of each series only in fully registered form without coupons and, unless we otherwise specify in the applicable prospectus supplement, in denominations of $1,000 and any mandatory sinking fund paymentsintegral multiple thereof. The indentures provide that we may issue debt securities of a series in temporary or permanent global form and as book-entry securities that will be deposited with, or on behalf of, The Depository Trust Company or another depositary named by us and identified in a prospectus supplement with respect to that series.
At the option of the holder, subject to the terms of the indentures and the limitations applicable to global securities described in the applicable prospectus supplement, the holder of the debt securities of thatany series oncan exchange the stated maturitydebt securities for other debt securities of such paymentsthe same series, in accordance withany authorized denomination and of like tenor and aggregate principal amount.
Subject to the terms of the indentureindentures and those debt securities.
This discharge may occur only if, among other things, we have deliveredthe limitations applicable to the trustee an officers’ certificate and an opinion of counsel stating that we have received from, or there has been published by, the U.S. Internal Revenue Service a ruling or, since the date of execution of the indenture, there has been a changeglobal securities set forth in the applicable U.S. federal income tax law, in either case to the effect thatprospectus supplement, holders of the debt securities may present the debt securities for exchange or for registration of suchtransfer, duly endorsed or with the form of transfer endorsed thereon duly executed if so required by us or the security registrar, at the office of the security registrar or at the office of any transfer agent designated by us for this purpose. Unless otherwise provided in the debt securities that the holder presents for transfer or exchange, we will impose no service charge for any registration of transfer or exchange, but we may require payment of any taxes or other governmental charges.
We will name in the applicable prospectus supplement the security registrar, and any transfer agent in addition to the security registrar, that we initially designate for any debt securities. We may at any time designate additional transfer agents or rescind the designation of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required to maintain a transfer agent in each place of payment for the debt securities of each series.
If we elect to redeem the debt securities of any series, we will not recognize income, gainbe required to:
issue, register the transfer of, or loss for U.S. federal income tax purposes as a result of the deposit, defeasance and discharge and will be subject to U.S. federal income tax on the same amount and in the same manner and at the same times as would have been the case if the deposit, defeasance and discharge had not occurred.
Defeasance of Certain Covenants. The indenture provides that, unless the terms of the applicable series of debt securities provide otherwise, upon compliance with certain conditions, we may omit to comply with the restrictive covenants contained in the indenture, as well asexchange any additional covenants contained in a supplement to the indenture, a board resolution or an officers’ certificate delivered pursuant to the indenture. The conditions include:
depositing with the trustee money and/or U.S. government obligations or, in the case of debt securities denominated in a single currency other than U.S. dollars, foreign government obligations, that, through the payment of interest and principal in accordance with their terms, will provide money in an amount sufficient in the opinion of a nationally recognized firm of independent public accountants to pay principal, premium and interest on and any mandatory sinking fund payments in respect of the debt securities of that series during a period beginning at the opening of business 15 days before the day of mailing of a notice of redemption of any debt securities that may be selected for redemption and ending at the close of business on the stated maturity of those payments in accordance with the termsday of the mailing; or
register the transfer of or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion of any debt securities we are redeeming in part.
Information Concerning the Trustee
The trustee, other than during the occurrence and continuance of an event of default under an indenture, undertakes to perform only those duties as are specifically set forth in the applicable indenture and thoseis under no obligation to exercise any of the powers given it by the indentures at the request of any holder of debt securities;securities unless it is offered reasonable security and indemnity against the costs, expenses and liabilities that it might incur. However, upon an event of default under an indenture, the trustee must use the same degree of care as a prudent person would exercise or use in the conduct of his or her own affairs.
deliveringPayment and Paying Agents
Unless we otherwise indicate in the applicable prospectus supplement, we will make payment of the interest on any debt securities on any interest payment date to the trustee an opinion of counsel to the effect that the holders ofperson in whose name the debt securities, of that series will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the deposit and related covenant defeasance and will be subject to U.S. federal income tax in the same amount and in the same manner andone or more predecessor securities, are registered at the same times as would have beenclose of business on the case ifregular record date for the deposit and related covenant defeasance had not occurred.interest payment.
Covenant Defeasance
We will pay principal of and Events of Default. In the event we exercise our option, as described above, not to comply with certain covenants of the indenture with respect to any series of debt securitiespremium and the debt securities of that series are declared due and payable because of the occurrence of any event of default, the amount of money and/or U.S. government obligations or foreign government obligations on deposit with the trustee will be sufficient to pay amounts dueinterest on the debt securities of thata particular series at the time of their stated maturity but may not be sufficient to pay amounts due on the debt securities of that series at the timeoffice of the acceleration resulting frompaying agents designated by us, except that unless we otherwise indicate in the event of default. However,applicable prospectus supplement, we will remain liablemake interest payments by check that we will mail to the holder or by wire transfer to certain holders. Unless we otherwise indicate in the applicable prospectus supplement, we will designate the corporate trust office of the trustee in the City of New York as our sole paying agent for those payments.
“Foreign government obligations” means,payments with respect to debt securities of each series. We will name in the applicable prospectus supplement any seriesother paying agents that are denominatedwe initially designate for the debt securities of a particular series. We will maintain a paying agent in each place of payment for the debt securities of a currency other than U.S. dollars:particular series.
direct obligations ofAll money we pay to a paying agent or the government that issued or caused to be issued such currencytrustee for the payment of which obligations its full faith and credit is pledged, which are not callablethe principal of or redeemableany premium or interest on any debt securities that remains unclaimed at the optionend of two years after such principal, premium or interest has become due and payable will be repaid to us, and the holder of the issuer thereof; or
obligations of a person controlled or supervised by or acting as an agency or instrumentality of that government the timelydebt security thereafter may look only to us for payment of which is unconditionally guaranteed as a full faith and credit obligation by that government, which are not callable or redeemable at the option of the issuer thereof.
Governing Law
The indentureindentures and the debt securities will be governed by and construed in accordance with the internal laws of the State of New York.York, except to the extent that the Trust Indenture Act is applicable.
Ranking Debt Securities
The subordinated debt securities will be unsecured and will be subordinate and junior in priority of payment to certain of our other indebtedness to the extent described in a prospectus supplement. The subordinated indenture does not limit the amount of subordinated debt securities that we may issue. It also does not limit us from issuing any other secured or unsecured debt.
The senior debt securities will be unsecured and will rank equally in right of payment to all our other senior unsecured debt. The senior indenture does not limit the amount of senior debt securities that we may issue. It also does not limit us from issuing any other secured or unsecured debt.
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DESCRIPTION OF WARRANTS WE MAY OFFER
As of December 23, 2015,April 2, 2019, we had no warrants to purchase 445,000 shares of our common stock outstanding, held of record by two security holders.outstanding. We typically issue warrants to purchase shares of our common stock to investors as part of a financing transaction, or in connection with services rendered by placement agents and outside consultants. Our outstanding warrants expire at varying dates through December 2020.
We may issue warrants to purchase debt securities, preferred stock, common stock or any combination of the foregoing. We may issue warrants independently or together with any other securities we offer under a prospectus supplement. The warrants may be attached to or separate from the securities. We will issue each series of warrants under a separate warrant agreement.agreement to be entered into between a warrant agent and us. The statements madewarrant agent will act solely as our agent in this section relatingconnection with the warrants and will not have any obligations or relationship of agency or trust for or with holders or beneficial owners of warrants. The following outlines some of the general terms and provisions of the warrants that we may issue from time to the warrant agreement are summaries only. These summaries are not complete.time. When we issue warrants, we will provide the specific terms of the warrants and the applicable warrant agreement in a prospectus supplement and any related free writing prospectuses and such terms may differ from those described below. To the extent the information contained in the prospectus supplement differs from this summary description, you should rely on the information in the prospectus supplement. The following description, and any description of the warrants included in a prospectus supplement, may not be complete and is subject to and qualified in its entirety by reference to the terms and provisions of the applicable warrant agreement.
Debt Warrants
We will describe in the applicable prospectus supplement and any related free writing prospectuses the terms of the debt warrants being offered, the warrant agreement relating to the debt warrants and the debt warrant certificates representing the debt warrants, including, as applicable:
the title of the debt warrants;
the aggregate number of the debt warrants;
the price or prices at which the debt warrants will be issued;
the designation, aggregate principal amount and terms of the debt securities purchasable upon exercise of the debt warrants, and the procedures and conditions relating to the exercise of the debt warrants;
the designation and terms of any related debt securities with which the debt warrants are issued, and the number of the debt warrants issued with each security;
the date, if any, on and after which the debt warrants and the related debt securities will be separately transferable;
the principal amount of debt securities purchasable upon exercise of each debt warrant, and the price at which the principal amount of the debt securities may be purchased upon exercise;
the date on which the right to exercise the debt warrants will commence, and the date on which the right will expire;
the maximum or minimum number of the debt warrants that may be exercised at any time;
information with respect to book-entry procedures, if any;
changes to or adjustments in the exercise price of the debt warrants;
a discussion of the material U.S. federal income tax considerations applicable to the exercise of the debt warrants; and
any other terms of the debt warrants and terms, procedures and limitations relating to the exercise of the debt warrants.
As may be permitted under the warrant agreement, holders may exchange debt warrant certificates for new debt warrant certificates of different denominations, and may exercise debt warrants at the corporate trust office of the warrant agent or any other office indicated in the applicable prospectus supplement and any related free writing prospectuses. Prior to the exercise of their debt warrants, holders of debt warrants will not have any of the rights of holders of the securities purchasable upon the exercise and will not be entitled to payments of principal, premium or interest on the securities purchasable upon the exercise of debt warrants.
Equity Warrants
We will describe in the applicable prospectus supplement and any related free writing prospectuses the terms of the preferred stock warrants or common stock warrants being offered, the warrant agreement relating to the preferred stock warrants or common stock warrants and the warrant certificates representing the preferred stock warrants or common stock warrants, including, as applicable:
the title of the warrants;
the securities for which the warrants are exercisable;
the price or prices at which the warrants will be issued;
if applicable, the number of warrants issued with each share of preferred stock or share of common stock;
if applicable, the date on and after which the warrants and the related preferred stock or common stock will be separately transferable;
the date on which the right to exercise the warrants will commence, and the date on which the right will expire;
the maximum or minimum number of warrants which may be exercised at any time;
information with respect to book-entry procedures, if any;
a discussion of the material U.S. federal income tax considerations applicable to exercise of the warrants; and
any other terms of the warrants, including terms, procedures and limitations relating to the exchange and exercise of the warrants.
Unless otherwise provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses, holders of equity warrants will not be entitled, by virtue of being such holders, to vote, consent, receive dividends, receive notice as stockholders with respect to any meeting of stockholders for the election of our directors or any other matter, or to exercise any rights whatsoever as stockholders.
Except as provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses, the exercise price payable and the number of shares of common stock or preferred stock purchasable upon the exercise of each warrant will be subject to adjustment in certain events, including the issuance of a stock dividend to holders of common stock or preferred stock or a stock split, reverse stock split, combination, subdivision or reclassification of common stock or preferred stock. In lieu of adjusting the number of shares of common stock or preferred stock purchasable upon exercise of each warrant, we may elect to adjust the number of warrants. Unless otherwise provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses, no adjustments in the number of shares purchasable upon exercise of the warrants will be required until all cumulative adjustments require an adjustment of at least 1% thereof. No fractional shares will be issued upon exercise of warrants, but we will pay the cash value of any fractional
shares otherwise issuable. Notwithstanding the foregoing, except as otherwise provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses, in case of any consolidation, merger, or sale or conveyance of our property as an entirety or substantially as an entirety, the holder of each outstanding warrant will have the right to the kind and amount of shares of stock and other securities and property, including cash, receivable by a holder of the number of shares of common stock or preferred stock into which each warrant was exercisable immediately prior to the particular triggering event.
Exercise of Warrants
Each warrant will entitle the holder of the warrant to purchase for cash at the exercise price provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses the principal amount of debt securities or shares of preferred stock or shares of common stock being offered. Holders may exercise warrants at any time up to the close of business on the expiration date provided in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses. After the close of business on the expiration date, unexercised warrants are void.
Holders may exercise warrants as described in the applicable warrant agreement and corresponding prospectus supplement or any free writing prospectuses relating to the warrants being offered. Upon receipt of payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant agent or any other office indicated in the applicable warrant agreement and corresponding prospectus supplement or any related free writing prospectuses, we will, as soon as practicable, forward the debt securities, shares of preferred stock or shares of common stock purchasable upon the exercise of the warrant. If less than all of the warrants represented by the warrant certificate are exercised, we will issue a new warrant certificate for the remaining warrants.
DESCRIPTION OF UNITS WE MAY OFFER
ThisThe following description, together with the additional information we may include in any applicable prospectus supplements and any accompanying prospectus supplement will containfree writing prospectuses, summarizes the material terms and conditions forprovisions of the units that we may offer under this prospectus. While the terms we have summarized below will apply generally to any units that we may offer under this prospectus, we will describe the particular terms of any series of units in more detail in the applicable prospectus supplement. The terms of any units offered under a prospectus supplement may differ from the terms described below. However, no prospectus supplement will fundamentally change the terms that are set forth in this prospectus or offer a security that is not registered and described in this prospectus at the time of its effectiveness.
We will file as exhibits to the registration statement of which this prospectus is a part, or will incorporate by reference from a current report on Form 8-K that we file with the SEC, the form of unit agreement that describes the terms of the series of units we are offering, and any supplemental agreements, before the issuance of the related series of units. AsThe following summaries of material terms and provisions of the units are subject to, and qualified in their entirety by reference to, all the provisions of the unit agreement and any supplemental agreements applicable to a particular series of units. We urge you to read the applicable prospectus supplements related to the particular series of units that we sell under this prospectus, as well as the complete unit agreement and any supplemental agreements that contain the terms of the units.
General
We may issue units comprised of one or more shares of common stock, shares of preferred stock, debt securities and warrants in any combination. Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately, at any time or at any time before a specified date.
We will describe in the applicable prospectus supplement units will be comprised of two or morethe terms of the following securities in any combination: debt securities, preferred stock, common stockseries of units, including:
the designation and warrants. You should refer to the applicable prospectus supplement for:
all terms of the units and of the debt securities preferred stock, common stock and warrants comprising the units, including whether and under what circumstances thethose securities comprising the units may be held or may not be tradedtransferred separately;
a descriptionany provisions of the terms of anygoverning unit agreement governing the units;that differ from those described below; and
a description of theany provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units.
The provisions described in this section, as well as those described under “Description of Capital Stock We May Offer,” “Description of Debt Securities We May Offer” and “Description of Warrants We May Offer” will apply to each unit and to any common stock, preferred stock, debt security or warrant included in each unit, respectively.
Issuance in Series
We may issue units in such amounts and in numerous distinct series as we determine.
Enforceability of Rights by Holders of Units
Each unit agent will act solely as our agent under the applicable unit agreement and will not assume any obligation or relationship of agency or trust with any holder of any unit. A single bank or trust company may act as unit agent for more than one series of units. A unit agent will have no duty or responsibility in case of any default by us under the applicable unit agreement or unit, including any duty or responsibility to initiate any proceedings at law or otherwise, or to make any demand
upon us. Any holder of a unit may, without the consent of the related unit agent or the holder of any other unit, enforce by appropriate legal action its rights as holder under any security included in the unit.
17We, the unit agents and any of their agents may treat the registered holder of any unit certificate as an absolute owner of the units evidenced by that certificate for any purpose and as the person entitled to exercise the rights attaching to the units so registered, despite any notice to the contrary.
PLAN OF DISTRIBUTION
We may sell the offered securities from time to time.
through agents;
to or through underwriters;
to or through broker-dealers (acting as agent or principal);
in “at the market offerings” within the meaning of Rule 415(a)(4) of the Securities Act, to or through a market maker or into an existing trading market, on an exchange, or otherwise;Act;
directly to purchasers, through a specific bidding or auction process or otherwise; or
through a combination of these methods of sale.
The applicable prospectus supplement (and any related free writing prospectus that we may authorize to be provided to you) will describe the terms of the offering of the securities, including:
the name or names of any underwriters, if any, and if required, any dealers or agents;agents and the amount of shares underwritten or purchased by each of them;
the purchase price or other consideration to be paid in connection with the sale of the securities being offered and the proceeds we will receive from the sale;
any underwriting discounts or agency fees and other items constituting underwriters’ or agents’ compensation;
any over-allotment options under which underwriters may purchase additional securities from us;
any discounts or concessions allowed or reallowed or paid to dealers; and
any securities exchange or market on which the securities may be listed.
We may distribute the securities from time to time in one or more transactions at:
fixed price or prices, which may be changed from time to time;
market prices prevailing at the time of sale;
prices related to such prevailing market prices; or
negotiated prices.
Only underwriters named in the prospectus supplement are underwriters of the securities offered by the prospectus supplement.
If we utilize an underwriter in the sale of the securities being offered, we will execute an underwriting agreement with the underwriter at the time of sale. Any underwriters used in the sale will acquire the securities for their own account and may resell the securities from time to time in one or more transactions at a fixed public offering price or at varying prices determined at the time of sale. The obligations of the underwriters to purchase the securities will be subject to the conditions set forth in
the applicable underwriting agreement. We may offer the securities to the public through underwriting syndicates represented by managing underwriters or by underwriters without a syndicate.
In connection with the sale of the securities, we, or the purchasers of the securities for whom the underwriter may act as agent, may compensate the underwriter in the form of underwriting discounts or commissions. The underwriter may sell the securities to or through dealers, and the underwriter may compensate those dealers in the form of discounts, concessions or commissions. Subject to certain conditions, the underwriters will be obligated to purchase all of the securities offered by the prospectus supplement. We may change from time to time the public offering price and any discounts or concessions allowed or reallowed or paid to dealers.
We may directly solicit offers to purchase the securities. We may also designate agents to solicit offers to purchase the securities from time to time. We will name in a prospectus supplement any agent involved in the offer or sale of our securities. Unless the prospectus supplement states otherwise, our agent will act on a best-efforts basis for the period of its appointment.
If we utilize a dealer in the sale of the securities being offered by this prospectus, we will sell the securities to the dealer, as principal. The dealer may then resell the securities to the public at varying prices to be determined by the dealer at the time of resale.
We may authorize agents or underwriters to solicit offers by institutional investors to purchase securities from us at the public offering price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in the future. We will describe the conditions to these contracts and the commissions we must pay for solicitation of these contracts in the prospectus supplement.
Underwriters, dealers and agents participating in the distribution of the securities may be deemed to be underwriters within the meaning of the Securities Act, and any discounts and commissions received by them and any profit realized by them on resale of the securities may be deemed to be underwriting discounts and commissions. We may enter into agreements to indemnify underwriters, dealers and agents against civil liabilities, including liabilities under the Securities Act, or to contribute to payments they may be required to make in respect thereof.
In addition, we may enter into derivative transactions with third parties (including the writing of options), or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with such a transaction, the third parties may, pursuant to this prospectus and the applicable prospectus supplement, sell securities covered by this prospectus and the applicable prospectus supplement. If so, the third party may use securities borrowed from us or others to settle such sales and may use securities received from us to close out any related short positions. We may also loan or pledge securities covered by this prospectus and the applicable prospectus supplement to third parties, who may sell the loaned securities or, in an event of default in the case of a pledge, sell the pledged securities pursuant to this prospectus and the applicable prospectus supplement. The third party in such sale transactions will be an underwriter and will be identified in the applicable prospectus supplement or in a post-effective amendment.
All securities we offer, other than common stock, will be new issues of securities with no established trading market. Any underwriters may make a market in these securities, but will not be obligated to do so and may discontinue any market making at any time without notice. We cannot guarantee the liquidity of the trading markets for any securities. Shares of our common stock sold pursuant to the registration statement of which this prospectus is a part will be authorized for listing and trading on the NASDAQ. The applicable prospectus supplement will contain information, where applicable, as to any other listing, if any, on the NASDAQ or any securities market or other securities exchange of the securities covered by the prospectus supplement.
Underwriters may engage in stabilizing and syndicate covering transactions in accordance with Rule 104 under the Exchange Act. Rule 104 permits stabilizing bids to purchase the securities being offered as long as the stabilizing bids do not exceed a specified maximum. Underwriters may over-allot the offered securities in connection with the offering, thus creating a short position in their account. Syndicate covering transactions involve purchases of the offered securities by underwriters in the open market after the distribution has been completed in order to cover syndicate short positions. Underwriters may also
cover an over-allotment or short position by exercising their over-allotment option, if any. Stabilizing and syndicate covering transactions may cause the price of the offered securities to be higher than it would otherwise be in the absence of these transactions. These transactions, if commenced, may be discontinued at any time.
Any underwriters who are qualified market makers on the NASDAQ may engage in passive market making transactions in the securities on the NASDAQ in accordance with Rule 103 of Regulation M, during the business day prior to the pricing of the offering, before the commencement of offers or sales of the common stock. Passive market makers must comply with applicable volume and price limitations and must be identified as passive market makers. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security; if all independent bids are lowered below the passive market maker’s bid, however, the passive market maker’s bid must then be lowered when certain purchase limits are exceeded.
In compliance with guidelines of the Financial Industry Regulatory Authority, or FINRA, the maximum consideration or discount to be received by any FINRA member or independent broker dealer may not exceed 8% of the aggregate amount of the securities offered pursuant to this prospectus and any applicable prospectus supplement.
The underwriters, dealers and agents may engage in other transactions with us, or perform other services for us, in the ordinary course of their business. We will describe such relationships in the prospectus supplement naming the underwriter and the nature of any such relationship.
LEGAL MATTERS
The validity of the securities being offered hereby will be passed on by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach,Paul Hastings, LLP, San Diego, California. Any underwriters, dealers or agents will also be advised about the validity of the securities and other legal matters by their own counsel, which will be named in the prospectus supplement.
EXPERTS
The consolidated financial statements, and the related financial statement schedule, incorporated in this prospectus by reference from the Company’s Annual Report on Form 10-K, for the year ended December 31, 2014, and the effectiveness of Spectrum Pharmaceuticals, Inc.’s and its subsidiaries’ internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports, which are incorporated herein by reference. Such consolidated financial statements and financial statement schedulesschedule have been so incorporated in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Ernst & Young LLP, independent registered public accounting firm, has audited our consolidated financial statements included in our Annual Report on Form 10-K for the years ended December 31, 2013 and 2012, as set forth in their report, which is incorporated by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated by reference in reliance on Ernst & Young LLP's report, given on their authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are a reporting company and file annual, quarterly and current reports, proxy and information statements and other information with the SEC. This prospectus is part of a registration statement on Form S-3 that we have filed with the SEC registeringrelating to the securities that mayto be offered and sold hereunder. Theunder this prospectus. This prospectus does not contain all of the information set forth in the registration statement includingand the exhibits thereto, contains additional relevantto the registration statement. For further information aboutwith respect to us and thesethe securities that,to be offered under this prospectus, we refer you to the registration statement and the exhibits and schedules filed as permitted by the rules and regulations of the SEC, we have not included in this prospectus. A copya part of the registration statement can be obtained at the address set forth below. You should read the registration statement for further information about us and these securities.
We file annual, quarterly and special reports, proxy statements and other information with the SEC under the Exchange Act. You may read and copy this information at the following SEC location:
Public Reference Room
100 F Street, N.E.
Washington, D.C. 20549
You may obtain information on the operation of the Public Reference Room by calling the SEC at (800) SEC-0330.statement. The SEC also maintains a weban internet site that contains reports, proxy statements,and information statements, and other information aboutregarding issuers like Spectrum Pharmaceuticals, Inc., whothat file electronically with the SEC.SEC, where you may read and copy the registration statement, as well as our reports, proxy and information statements and other information. The address of thatthe SEC’s web site is www.sec.gov.
www.sec.gov. We maintain a website at www.spprix.com. Information contained in or accessible through our website does not constitute a part of this prospectus.
In addition, our common stock is listed on the NASDAQ and similar information concerning us can be inspected and copied at the offices of The Nasdaq Stock Market, One Liberty Plaza, 165 Broadway, New York, NY 10006.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to “incorporate by reference” information into this prospectus. This means that we can disclose important information about us and our financial condition to you by referring you to another document filed separately with the SEC. The information incorporated by reference is considered to be part of this prospectus. This prospectus incorporates by reference the documents listed below that we have previously filed with the SEC:
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2014,2018, as filed with the SEC on March 13, 2015;February 28, 2019;
Our Definitive Proxy Statement on Schedule 14A, as filed with the SEC on April 30, 2015;
Our Quarterly ReportsMay 7, 2018 (to the extent incorporated by reference into Part III of our Annual Report on Form 10-Q10-K for the fiscal quarteryear ended MarchDecember 31, 2015, as filed with the SEC on May 8, 2015, for the fiscal quarter ended June 30, 2015, as filed with the SEC on August 7, 2015, and for the fiscal quarter ended September 30, 2015, as filed with the SEC on November 6, 2015;2017);
Our Current Reports on Form 8-K, as filed with the SEC on February 20, 2015, July 2 ,2015,June 18, 2018, November 18, 2015, November 25, 201513, 2018, January 17, 2019 and DecemberMarch 7, 2015;2019; and
The description of our common stock contained in the Registration of Securities of Certain Successor Issuers
filed pursuant to Section 12(g) of the Exchange Act on Form 8-B on June 27, 1997, including any amendment or reports filed for the purpose of updating such description; and
The description of our Rights to Purchase Series B Junior Participating Preferred Stock contained in the Registration of Certain Classes of Securities filed pursuant to Section 12(b) of the Exchange Act on Form 8-A on December 13, 2010, including any amendment or reports filed for the purpose of updating such description.
We also incorporate by reference into this prospectus all documents that we may filefiled by us with the SEC after the date of this prospectus pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act and prior to the sale of all securities registered hereunder or termination of the registration statement.any offering of securities made by this prospectus. Nothing in this prospectus shall be deemed to incorporate information furnished but not filed with the SEC (including without limitation, information furnished under Item 2.02 or Item 7.01 of Form 8-K, and any exhibits relating to such information).
Any statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein or in the applicable prospectus supplement or in any other subsequently filed document which also is or is deemed to be incorporated by reference modifies or supersedes the statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
You may request a copy of the filings incorporated herein by reference, including exhibits to such documents that are specifically incorporated by reference, at no cost, by writing or calling us at the following address or telephone number:
Spectrum Pharmaceuticals, Inc.
11500 South Eastern Avenue, Suite 240
Henderson, Nevada 89052
Telephone: (702) 835-6300
Attention: Investor Relations
Statements contained in this prospectus as to the contents of any contract or other documents are not necessarily complete, and in each instance investors are referred to the copy of the contract or other document filed as an exhibit to the registration statement, each such statement being qualified in all respects by such reference and the exhibits and schedules thereto.
$250,000,000
Debt SecuritiesCommon Stock
Preferred Stock
Common StockDebt Securities
Warrants
Units
WarrantsApril 5, 2019
Units
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PROSPECTUS
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, 2015
The information in this prospectus is not complete and may be changed. We may not sell these securities or accept an offer to buy these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities, and it is not soliciting offers to buy these securities in any state where such offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED DECEMBER 23, 2015
PROSPECTUS
Up to $100,000,000 of Shares$150,000,000
______________________
This sales agreement prospectus relates to the issuance and sale of up to $100,000,000 of shares of our common stock having an aggregate offering price of up to $150,000,000 from time to time through our sales agents, FBR Capital MarketsCantor Fitzgerald & Co., or FBR, MLV & Co. LLC, or MLV, and H.C. Wainwright & Co., LLC or HCW,and B. Riley FBR, Inc., collectively, the “sales agents.”Sales Agents. These sales, if any, will be made pursuant to the terms of the At Market IssuanceControlled Equity OfferingSM Sales Agreement, as amended, or the sales agreement,Sales Agreement, among us and the sales agents,Sales Agents, dated April 5, 2019, which is filed with the Securities and Exchange Commission, or the SEC, as an exhibit to the registration statement of which this prospectus is part.
Our common stock is traded on the Nasdaq Global Select Market, or the NASDAQ, under the symbol “SPPI.” On December 22, 2015,April 2, 2019, the closing sale price of our common stock on the NASDAQ was $5.98$10.59 per share.
Sales of shares of our common stock under this prospectus, if any, may be made by any method deemed to be an “at the market offering” as defined in Rule 415415(a)(4) promulgated under the Securities Act of 1933, as amended, or the Securities Act, including sales made directly on or through the NASDAQ, the existing trading market for our common stock or sales made to or through a market maker other than on an exchange.Act. The sales agentsSales Agents are not required to sell any specific number or dollar amount of shares of our common stock. Each of the sales agents haveSales Agents has agreed to use its commercially reasonable efforts to sell on our behalf all of the shares of common stock requested to be sold by us, consistent with its normal trading and sales practices, on mutually agreed terms among the sales agentsSales Agents and us. There is no arrangement for funds to be received in any escrow, trust or similar arrangement.
The sales agentsSales Agents will be entitled to compensation under the terms of the sales agreementSales Agreement at a commission rate of up to 3.0% of the gross proceeds of the sales price of common stock that they sell.per share sold. The net proceeds from any sales under this prospectus will be used as described under “Use of Proceeds.” The proceeds we receive from sales of our common stock, if any, will depend on the number of shares actually sold and the offering price of such shares.
In connection with the sale of common stock on our behalf, each of FBR, MLV, and HCWthe Sales Agents will be deemed to be an underwriter“underwriter” within the meaning of the Securities Act, and the compensation of the sales agentsSales Agents will be deemed to be underwriting commissions or discounts. We have agreed to provide indemnification and contribution to the sales agentsSales Agents with respect to certain liabilities, including liabilities under the Securities Act.
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Investing in our securitiescommon stock involves a high degree of risk. You should readreview carefully and consider the information contained inrisks and incorporated byuncertainties referenced under “Risk Factors”the heading “Risk Factors” beginning on page SA-4SA-5 of this prospectus and the risk factors contained in other documents incorporated by reference.
___________________________
reference in this prospectus.
Neither the SECSecurities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined ifpassed upon the accuracy or adequacy of this prospectus is truthful or complete.prospectus. Any representation to the contrary is a criminal offense.
FBRMLV & Co. H.C. Wainwright & Co.
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| Cantor Fitzgerald & Co. | H.C. Wainwright & Co. | B. Riley FBR |
The date of this prospectus is ___________ __, 20__.April 5, 2019.
TABLE OF CONTENTS
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| | Page |
| ABOUT THIS PROSPECTUS | |
| PROSPECTUS SUMMARY | |
| THE OFFERING | |
| RISK FACTORS | SA-4 |
| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | SA-5 |
| USE OF PROCEEDS | SA-6 |
DILUTION | SA-6 |
PRICE RANGE OF COMMON STOCK | SA-7 |
DIVIDEND POLICY | SA-7 |
| DESCRIPTION OF CAPITAL STOCK WE MAY OFFER | SA-8 |
| DILUTION | |
PLAN OF DISTRIBUTIONDISTRIBTION | SA-10 |
| LEGAL MATTERS | SA-10 |
| EXPERTS | SA-10 |
| WHERE YOU CAN FIND MORE INFORMATION | SA-11 |
| INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE | SA-12 |
ABOUT THIS PROSPECTUS
This prospectus is part of aan automatic registration statement on Form S-3 that we filed with the SEC, as a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act, utilizing a “shelf” registration process. Under the shelf registration process, we may offer shares of our common stock having an aggregate offering price of up to $100,000,000 from time to time$150,000,000 under this prospectus at prices and on terms to be determined by market conditions at the time of offering.
This prospectus and the documents incorporated into eachthis prospectus by reference include important information about us, the shares being offered and other information you should know before investing in our common stock. To the extent there is a conflict between the information contained in this prospectus, on the one hand, and the information contained in any document incorporated by reference into this prospectus that was filed with the SEC before the date of this prospectus, on the other hand, you should rely on the information in this prospectus. However, if any statement in one of these documents is inconsistent with a statement in another document having a later date—for example, a document incorporated by reference in this prospectus—the statement in the document having the later date modifies or supersedes the earlier statement as our business, financial condition, results of operations and prospects may have changed since the earlier dates.
We further note that the representations, warranties and covenants made by us in any agreement, including the Sales Agreement, that is filed as an exhibit to any document that is incorporated by reference herein were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreement, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.
You should rely on this prospectus and the information incorporated or deemed to be incorporated by reference ininto this prospectus. We have not, and the sales agentsSales Agents have not, authorized anyone to provide you with information that is in addition to or different from that contained or incorporated by reference ininto this prospectus. We and each of FBR, MLV, and HCWthe Sales Agents take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. Neither we nor any of the sales agentsSales Agents are offering to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained or incorporated by reference in this prospectus is accurate as of any date other than as of the date of this prospectus or in the case of the documents incorporated by reference, the date of such documents regardless of the time of delivery of this prospectus or any sale of our common stock. Our business, financial conditions, liquidity, results of operations and prospects may have changed since those dates. You should read this prospectus, the documents incorporated by reference into this prospectus, and any free writing prospectus that we may authorize for use in connection with this offering, in their entirety before making an investment decision. You should also read and consider the information in the documents to which we have referred you in the sections of this prospectus titled “Where You Can Find Additional Information” and “Incorporation of Certain Information by Reference.”
Unless otherwise indicated or the context otherwise requires, the terms “Company,” “Spectrum Pharmaceuticals,” “we,” “us” and “our” refer to Spectrum Pharmaceuticals, Inc., a Delaware corporation, and its predecessors and consolidated subsidiaries.
PROSPECTUS SUMMARY
The following is a summary of selected information contained elsewhere in this prospectus or incorporated by reference.reference into this prospectus. It does not contain all of the information that you should consider before buying our securities. You should read this prospectus in its entirety, including the information incorporated by reference herein, and therein.before deciding to buy shares of our common stock.
Business Overview of Spectrum Pharmaceuticals, Inc. Overview
Spectrum Pharmaceuticals isWe are a biotechnologybiopharmaceutical company with fully integrated commercialfocused on acquiring, developing, and commercializing novel and targeted drug development operations,products, with a primary focus on in oncology. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to sales and marketing expertise to execute product launches.
On March 1, 2019, we completed the sale of the assets and liabilities related to various hematology/oncology and hematology. products of the Company.
We currently market five intravenous drug productshave two oncology drugs in late-stage and active development:
ROLONTIS, a novel long-acting granulocyte colony-stimulating factor, analog for chemotherapy-induced neutropenia. In December 2015, we reached agreement with the U.S. Food and Drug Administration, or the FDA, regarding our Phase 3 Special Protocol Assessment for ROLONTIS. This pivotal Phase 3 study was initiated in the first quarter of 2016 to evaluate ROLONTIS as a treatment for chemotherapy-induced neutropenia. We announced in February 2018 that the top line results of this study met the non-inferiority of ROLONTIS to pegfilgrastim endpoint in the Duration of Severe Neutropenia, or DSN, across all four cycles (all p<0.0001). We initiated a second pivotal Phase 3 study and announced in June 2018, that it had also met its primary efficacy endpoint of non-inferiority in DSN between ROLONTIS and pegfilgrastim.
Poziotinib, a novel pan-HER inhibitor under investigation for non-small cell lung cancer treatment:
FUSILEV® injection(“NSCLC”) tumors with either EGFR or HER2 exon-20 insertion mutations. Our clinical development program for poziotinib is focused on four pillars, including previously treated NSCLC, first-line treatment of NSCLC, combination therapy and treatment of other solid tumors with EGFR or HER2 mutations. NSCLC tumors with EGFR or HER2 exon-20 insertion mutations are rare, and have generally not been responsive to other tyrosine kinase inhibitors. Patients with these mutations have a poor prognosis, and available treatment options are limited. Poziotinib, due to its unique chemical structure and characteristics, is believed to inhibit cell growth of EGFR or HER2 exon-20 insertions. In collaboration with The University of Texas MD Anderson Cancer Center (“MD Anderson”), an investigator-sponsored Phase 2 trial was initiated in NSCLC patients with advancedEGFR or HER2 exon-20 mutations. This Phase 2 Study demonstrated high anti-tumor activity for poziotinib in metastatic, colorectal cancerheavily pretreated EGFR exon 20 mutant NSCLC, a group for which no targeted agents have proven to be effective to date. In addition to the MD Anderson study, we have an ongoing pivotal Phase 2 global study with active sites in the U.S., Canada, and to counteract certain side effectsEurope. On January 2, 2019 we announced full enrollment of methotrexate therapy;
ZEVALIN® injectionthe cohort 1 (N=87) for previously treated NSCLC patients with follicular non-Hodgkin’s lymphoma;
FOLOTYN® injection for patientsEGFR exon 20 insertion mutations with relapsed or refractory peripheral T-cell lymphoma, or PTCL;
MARQIBO® injection for patients with Philadelphia chromosome-negative acute lymphoblastic leukemia;sites across the U.S., Europe, and
BELEODAQ® injection for patients with relapsed or refractory PTCL.
We also have ongoing indication expansion studies with several of our marketed products, and a diversified pipeline of product candidates in Phase 2 and Phase 3 clinical studies.
Canada.
Our business strategy is comprisedto further the development of our late stage assets through commercialization and acquire new assets through partnerships or acquisitions. We are focused on moving ROLONTIS through the regulatory process as quickly as possible. Subject to our resubmission of the following initiatives.
MaximizingROLONTIS Biologics License Application and approval by the growth potential ofFDA, we plan to use our five currently-marketed drugs for the treatment of cancer. Our near-term outlook largely depends on sales and marketing successes forpersonnel and expertise to launch ROLONTIS in the United States, while we evaluate partnership opportunities in other geographies. We are currently evaluating poziotinib in a number of clinical studies that are actively enrolling patients. Top-line results from the first of these studies are expected in the fourth quarter of 2019. We are also looking to expand our five marketed drugs. It is this “base business”pipeline through acquisitions or partnerships of development-stage or commercial-stage assets that provides the requisite working capital to operatewould complement our daily operations, and for opportunistic acquisitions and licensing arrangements.existing portfolio.
Developing and commercializing drugs for the treatment of cancer within our pipeline. Our focus is on drugs in the late-stages of development. We strive to timely complete clinical studies in order to obtain regulatory approval expeditiously. Upon obtaining regulatory approval, our sales, marketing and medical affairs functions educate physicians on the safety and effectiveness of the drug in treating cancer patients for the approved indication(s).
Expanding our pipeline of development-stage and commercial-stage drugs, while also pursuing out-licensing opportunities. We are constantly seeking strategic opportunities that complement our current product portfolio. We will continue to explore collaborations with third parties for cancer drugs that are in the clinical trial phase of development, as well as the acquisition of the rights to cancer drugs that have significant growth potential. To maximize revenue potential, we also pursue strategic out-license opportunities for our drugs in specific territories.
You can find more information about us in our filings with the SEC referenced in the sections in this document titled “Where You Can Find More Information” and “Incorporation of Certain Documents by Reference.”
Corporate Information
Spectrum Pharmaceuticals, Inc. is a Delaware corporation that was originally incorporated in Colorado as Americus Funding Corporation in December 1987, became NeoTherapeutics, Inc. in August 1996, was reincorporated in Delaware in June 1997, and was renamed Spectrum Pharmaceuticals, Inc. in December 2002. More comprehensive information about our products and us is available through our website at www.sppirx.com.www.sppirx.com. The information on our website is not incorporated by reference into this prospectus. Our principal executive offices are located at 11500 South Eastern Avenue, Suite 240, Henderson, Nevada 89052, and our telephone number is (702) 835-6300.
The OfferingTHE OFFERING
The following summary contains basic information about our common stock and the offering and is not intended to be complete. It does not contain all of the information that may be important to you. For a more complete understanding of our common stock, you should read the section entitledtitled “Description of Capital Stock.Stock we may Offer.”
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| Issuer | Spectrum Pharmaceuticals, Inc. |
| Common stock offered | Shares of our common stock having an aggregate offering price of up to $100$150 million. |
Manner of offering | “At the market offering” that may be made from time to time through our sales agents, FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. See “Plan of Distribution” beginning on page SA-10 of this prospectus. |
Common stock to be outstanding after this offering(1) | Up to 16,722,408124,689,446 shares, assuming a sales price at a price of $5.98$10.59 per share, which was the closing price of our common stock on the NASDAQ on December 22, 2015.April 2, 2019. The actual number of shares issued will vary depending on the sales price under this offering. |
Risk FactorsPlan of Distribution | Your investment in“At the market offering” that may be made from time to time through our common stock involves substantial risks. You should read carefully the “Risk Factors” included and incorporated by reference inSales Agents. See “Plan of Distribution” beginning on page SA-15 of this prospectus, including the risk factors incorporated by reference from our filings with the SEC. |
NASDAQ symbol | SPPIprospectus. |
| Use of Proceeds | We intend to use the net proceeds from this offering, if any, for general corporate purposes, including, without limitation, salesresearch and marketingdevelopment and clinical development costs to support the advancement of our in-development drug candidates, activities clinical development,in connection with the launch of our in-development drug candidates, including hiring and building inventory supply, making acquisitions of assets, businesses, companies or securities, capital expenditures and for working capital. See “Use of Proceeds” beginning on page SA-6SA-10 of this prospectus. |
| Risk Factors | Investment in our common stock involves substantial risks. You should read carefully the “Risk Factors” included in and incorporated by reference into this prospectus, including the risk factors incorporated by reference from our filings with the SEC. |
| NASDAQ symbol | SPPI |
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(1) | The common stock outstanding after the offering is based on 110,525,141 shares of our common stock outstanding as of December 31, 2018 and the sale of 14,164,305 shares of our common stock at an assumed offering price of $10.59 per share, the last reported sale price of our common stock on the NASDAQ on April 2, 2019 and excludes the following: |
(1) The common stock outstanding after the offering is based on approximately 67,314,580 shares of our common stock outstanding as of September 30, 2015 and excludes the following:
12,436,3486,843,585 shares of our common stock issuable upon the exercise of options outstanding as of September 30, 2015,December 31, 2018, having a weighted average exercise price of $7.12$8.98 per share;
445,0001,802,130 shares of our common stock issuable upon the exercisevesting and settlement of warrantsoutstanding restricted stock awards, outstanding as of September 30, 2015,December 31, 2018, having an exercise pricea weighted average grant date fair value of $6.39$12.75 per share;
40,000255,214 shares of our common stock issuable upon conversionthe vesting and settlement of our outstanding sharesrestricted stock units, outstanding as of Series E convertible preferred stock;December 31, 2018, having a weighted average grant date fair value of $17.91 per share; and
an aggregate of 8,453,07426,452,487 shares of our common stock reserved for future issuance as of September 30, 2015December 31, 2018 under our 2009 Stock2018 Long-Term Incentive Plan and 2009 Employee Stock Purchase Plan.
RISK FACTORS
BeforeInvestment in our securities involves risks. Prior to making an investmenta decision about investing in our securities, you should consider carefully considerall of the risks described belowinformation included in and discussed inincorporated by reference or deemed to be incorporated by reference into this prospectus, including the section titled “Risk Factors” inrisk factors incorporated by reference herein from our most recent Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019, as well as the risks, uncertaintiesupdated by annual, quarterly and additional information set forth in our SECother reports on Forms 10-K, 10-Q and 8-K and in other documents incorporated by reference in this prospectus. We expect to update these Risk Factors from time to time in the periodic and current reports that we file with the SEC after the date of this prospectus. These updated Risk Factors will beprospectus and that are incorporated by reference herein or in thisany free writing prospectus. OurEach of these risk factors could have a material adverse effect on our business, financial condition or results of operations, could be materially adversely affected byfinancial position or cash flows, which may result in the loss of all or part of your investment. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations. If any of these risks. Therisks actually occur, our business and financial results could be harmed. In that case, the trading price of our common stock or other securities could decline due to any of these risks, and you may lose all or part of your investment.decline. Please also read carefully the section below titled “Cautionary Note Regarding Forward-Looking Statements.”
Risks Related to This Offering
ManagementOur management will have broad discretion as to the use of the proceeds from this offering and may not use the proceeds effectively.effectively.
Because we have not designated the amount of net proceeds from this offering to be used for any particular purpose, our management will have broad discretion as to the application of the net proceeds from this offering and could use them for purposes other than those contemplated at the time of the offering. Our management may use the net proceeds for corporate purposes that may not improve our financial condition or market valuevalue.
Future sales of substantial amounts of our common stock, or the possibility that such sales could occur, could adversely affect the market price of our common stock.stock.
We may issue up to $100,000,000$150,000,000 of common stock from time to time in this offering. The issuance from time to time of shares in this offering, as well as our ability to issue such shares in this offering, could have the effect of depressing the market price or increasing the market price volatility of our common stock. See “Plan of Distribution” on page SA-10SA-15 of this prospectus for more information about the possible adverse effects of our sales under the sales agreement.Sales Agreement.
You may experience immediate and substantial dilution.dilution.
The offering price per share in this offering may exceed the net tangible book value per share of our common stock. Assuming that an aggregate of 16,722,40814,164,305 shares of our common stock are sold at a price of $5.98$10.59 per share pursuant to this prospectus which was the last reported sale price of our common stock on the NASDAQ on December 22, 2015,April 2, 2019, for aggregate grossnet proceeds of $97,000,000approximately $145.2 million, after deducting commissions and estimated aggregate offering expenses payable by us, you would experience immediate dilution of $2.11$8.19 per share, representing a difference between our as adjusted net tangible book value per share as of September 30, 2015December 31, 2018, after giving effect to this offering and the assumed offering price. The exerciseTo the extent that any options or warrants are exercised, any restricted stock units vest and are settled, any new equity awards are issued under our equity incentive plans, or we otherwise issue additional shares of outstandingcommon stock optionsin the future (including shares issued in connection with strategic and warrantsother transactions), you will experience further dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations, even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution of your investment.to our stockholders. See the section entitled “Dilution” on page SA-6SA-15 of this prospectus for a more detailed illustration of the dilution you would incur if you participate in this offering.
SA- 4You may experience future dilution as a result of future equity offerings.
In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock. We cannot assure you that we will be able to sell shares or other securities in any other offering at a price per share that is equal to or greater than the price per share paid by investors in this offering, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the price per share in this offering. As of December 31, 2018, approximately 22.6 million shares of common stock that are either subject to outstanding options, issuable upon vesting of outstanding restricted stock units, reserved for future issuance under our equity incentive plans or subject to outstanding warrants are eligible for sale in the public market to the extent permitted by the provisions of various vesting schedules and Rule 144 and Rule 701 under the Securities Act.
It is not possible to predict the actual number of shares we will sell under the Sales Agreement, or the gross proceeds resulting from those sales.
Subject to certain limitations in the Sales Agreement and compliance with applicable laws, we have the discretion to deliver a placement notice to the Sales Agents at any time throughout the term of the Sales Agreement. The number of shares that are sold through the Sales Agents after delivering a placement notice will fluctuate based on a number of factors, including the market price of our common stock during the term of the Sales Agreement, the limits we set with the Sales Agents in any applicable placement notice, and the demand for our common stock during the term of the Sales Agreement. Because the price per share of each share sold will fluctuate during the term of the Sales Agreement, it is not currently possible to predict the number of shares that will be sold or the gross proceeds to be raised in connection with the sales of shares of common stock offered under this prospectus.
The common stock offered hereby will be sold in “at the market offerings," and investors who buy shares at different times will likely pay different prices.
Investors who purchase shares in this offering at different times will likely pay different prices, and so may experience different levels of dilution and different outcomes in their investment results. We will have discretion, subject to market demand, to vary the timing, prices and numbers of shares sold in this offering. In addition, there is no minimum or maximum sales price for shares to be sold in this offering. Investors may experience a decline in the value of the shares they purchase in this offering as a result of sales made at prices lower than the prices they paid.
Additional Risks Related to Our Business
The proceeds from our recent asset sale may not be sufficient to sustain our business operations.
We recently completed the sale of our seven FDA-approved hematology/oncology products to Acrotech Biopharma L.L.C. in return for an up-front cash payment of $158.8 million plus the potential to receive an additional $140 million in milestone payments. These products represented all of our incoming revenue from commercial product sales. We will not generate any revenue from commercial product sales until our pipeline products, including the late-stage development products poziotinib and ROLONTIS®, are approved for commercial sale by the FDA and/or other regulatory agencies. There is no guarantee as to when, if ever, our pipeline products will be approved for commercial sale. Accordingly, while we have significant capital resources from our recent sale of hematology/oncology products, we may need to raise additional capital to fund our business operations. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of those securities could result in further dilution to our stockholders.
We currently generate no revenue from commercial sales of our products, and our future profitability is uncertain.
As a result of the recent sale of our hematology/oncology products, we currently generate no revenue from the commercial sales of our products. Moreover, while we are in the late-stages of development of two of our pipeline products, poziotinib and ROLONTIS®, there can be no guarantee that these or any of our current or future pipeline products will be
approved for commercial sale. Furthermore, there can be no assurance that, even if our pipeline products are approved for sale, we will be able to successfully commercialize such products. Accordingly, the extent of our future revenue and profits, if any, are highly uncertain. Thus, if we do not receive regulatory approvals or cannot successfully commercialize our pipeline products, the price of our common stock may suffer, and we may need to seek alternatives in order to continue driving stockholder value.
Legislative or regulatory reform of the healthcare system and pharmaceutical industry related to pricing, coverage or reimbursement may hurt our ability to sell our products profitably or at all.
Our ability to commercialize any products successfully will depend in part on the availability of coverage and reimbursement from third-party payers such as government authorities, private health insurers, health maintenance organizations including pharmacy benefit managers and other health care-related organizations, in both the U.S. and foreign markets. Even if we succeed in bringing one or more products to market, the amount reimbursed for our products may be insufficient to allow us to compete effectively and could adversely affect our profitability. Coverage and reimbursement by governmental and other third-party payers may depend upon a number of factors, including a governmental or other third-party payer’s determination that use of a product includes but is not limited to:
a covered benefit under its health plan;
safe, effective and medically necessary;
appropriate for the specific patient;
cost-effective; and
neither experimental nor investigational.
Obtaining coverage and reimbursement approval for a product from each third-party and governmental payer is a time-consuming and costly process that could require us to provide supporting scientific, clinical and cost-effectiveness data for the use of our products to each payer. We may not be able to provide data sufficient to obtain coverage and adequate reimbursement.
In both the U.S. and certain foreign jurisdictions, there have been and may continue to be a number of legislative and regulatory proposals related to coverage and reimbursement that could impact our ability to sell our products profitably. The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010, collectively referred to as the Healthcare Reform Law, was signed into law on March 30, 2010. The Healthcare Reform Law substantially changed the way healthcare is financed by both governmental and private insurers and significantly impacted the pharmaceutical industry. The Healthcare Reform Law included, among other things, an annual, nondeductible fee on any entity that manufactures or imports specified branded prescription drugs and biologic agents, revisions to the definition of “average manufacturer price” for reporting purposes, increases in the amount of rebates owed by drug manufacturers under the Medicaid Drug Rebate Program, expansion of the 340B drug discount program that mandates discounts to certain hospitals, community centers and other qualifying providers, and changes to affect the Medicare Part D coverage gap, or “donut hole.” The full effects of these provisions will become apparent as these laws are implemented and the Centers for Medicare and Medicaid Services (“CMS”) and other agencies issue applicable regulations or guidance as required by the Healthcare Reform Law. Moreover, in the coming years, additional changes could be made to governmental healthcare programs that could significantly impact the success of our products. Additionally, on December 14, 2018, a Texas U.S. District Court Judge ruled that the Healthcare Reform Law is unconstitutional in its entirety because the “individual mandate” was repealed by Congress as part of the Tax Cuts and Jobs Act of 2017. While the Texas U.S. District Court Judge, as well as the Trump administration and CMS, have stated that the ruling will have no immediate effect pending appeal of the decision, it is unclear how this decision, subsequent appeals, and other efforts to repeal and replace the Healthcare Reform Law will impact the Healthcare Reform Law. We continue to evaluate how the Healthcare Reform Law and recent efforts to repeal and replace or limit the implementation of the Healthcare Reform Law will impact the success of our products.
The high cost of pharmaceuticals continues to generate substantial government interest. It is possible that proposals will be adopted, or existing regulations that affect the coverage and reimbursement of pharmaceutical and other medical products may change, that may impact our products currently on the market and any of our products approved for marketing in the future. Cost control initiatives could decrease the price that we receive for any of our products or product candidates. In addition, third-party payers are increasingly challenging the price and cost-effectiveness of medical products and services. Significant uncertainty exists as to the coverage and reimbursement status of newly-approved pharmaceutical products. Future developments may require us to decrease the price that we charge for our products, thereby negatively affecting our financial results.
In some foreign countries, particularly in the EU, prescription drug pricing is subject to governmental control. Drug pricing may be made against a reference price set by the healthcare providers as a measure for healthcare cost containment. Pricing negotiations with governmental authorities can take considerable time after the receipt of marketing approval for a product. If coverage and reimbursement of our products are unavailable or limited in scope or amount, or if pricing is set at unsatisfactory levels for the purpose of adoption of these products in the national health services in these jurisdictions, our profitability will likely be negatively affected.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference into this prospectus containscontain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the success, safety and efficacy of our drug products, product approvals, product sales, revenues, development timelines, product acquisitions, liquidity and capital resources and trends, and other statements containing forward-looking words, such as, “believes,” “may,” “could,” “would,” “will,” “expects,” “intends,” “estimates,” “anticipates,” “plans,” “seeks,” or “continues” or the negative thereof or variation thereon or similar terminology (although not all forward-looking statements contain these words). Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to our management. Readers should not put undue reliance on these forward-looking statements. Forward-looking statements are inherently subject tobecause they involve known and unknown risks, uncertainties and uncertainties,other factors, some of which cannot be predicted or quantified; therefore,are beyond our control. These risks, uncertainties and other factors may cause our actual results, may differperformance or achievements to be materially different from those described in anythe anticipated future results, performance or achievements expressed or implied by the forward-looking statements. The risks
Factors that might cause these differences include the following:
| |
| • | our ability to advance development and commercialization of our two late-stage pipeline assets, poziotinib and ROLONTIS®; |
the uncertainties inherent in new product development, including clinical trial results and uncertainties include those notedadditional analysis of existing clinical data;
the possibility that our existing and new drug candidates may not ultimately prove to be safe or effective;
the possibility that our existing and new applications to the FDA and other regulatory agencies may not receive approval in a timely manner or at all;
the possibility that our SEC filingsexisting and new drug candidates, if approved, may not be more effective, safer or any applicable prospectus supplement.more cost efficient than competing drugs;
our dependence on third parties for clinical trials, manufacturing, distribution and quality control;
the expected results resulting from the divestiture of our hematology/oncology products; and
changes in the anticipated use of proceeds of this offering.
We urge you to consider these factors carefully in evaluating the forward-looking statements contained in this prospectus and any prospectus supplement.prospectus. All subsequent written or oral forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this prospectus are made only as of the date of this prospectus. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent that we are required to do so by law.
SA- 5
USE OF PROCEEDS
The amount of proceeds from this offering will depend upon the number of shares of our common stock sold and the market price at which they are sold. There can be no assurance that we will be able to sell any shares under or fully utilize the sales agreement with FBR, MLV, and HCW.Sales Agreement as a source of financing. Because there is no minimum offering amount required as a condition to close this offering, the actual total proceeds to us, if any, are not determinable at this time.
We intend to use the net proceeds, if any, from this offering for general corporate purposes, including, without limitation, salesresearch and marketingdevelopment and clinical development costs to support the advancement of our in-development drug candidates, activities clinical development,in connection with the launch of our in-development drug candidates, including hiring and building inventory supply, making acquisitions of assets, businesses, companies or securities, capital expenditures and for working capital. We may temporarily invest the net proceeds in short-term, interest-bearing instruments or other investment-grade securities. We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, management will retain broad discretion over the allocation of net proceeds.
DILUTION
If you invest in our common stock, your ownership interest will be diluted to the extent of the difference between the public offering price per shareThe amounts and the as-adjusted net tangible book value per share after this offering. We calculate net tangible book value per share by dividing the net tangible book value, which is tangible assets less total liabilities, by the number of outstanding sharestiming of our common stock.
After giving effect to the sale of our common stock pursuant to this prospectus in the aggregate amount of $100 million at an assumed offering price of $5.98 per share, the last reported sale price of our common stock on the NASDAQ on December 22, 2015, and after deducting commissions and estimated aggregate offering expenses payable by us, our net tangible book value as of September 30, 2015 would have been $325,454,000, or $3.87 per share of common stock. This represents an immediate increase in the net tangible book value of $0.48 per share to our existing stockholders and an immediate dilution in net tangible book value of $2.11 per share to new investors. The following table illustrates this per share dilution:
|
| | | | | | | | |
| Assumed offering price per share | | | $ | 5.98 |
| |
| Net tangible book value per share as of September 30, 2015 | $ | 3.39 |
| | | |
| Increase in net tangible book value per share after this offering | $ | 0.48 |
| | |
| |
| As-adjusted net tangible book value per share after this offering | | | $ | 3.87 |
| |
| Dilution per share to new investors in this offering | | | $ | 2.11 |
| |
The above discussion and table are based on approximately 67,314,580 shares of our common stock outstanding as of September 30, 2015 and excludes the following:
12,436,348 shares of our common stock issuable upon the exercise of options outstanding as of September 30, 2015, having a weighted average exercise price of $7.12 per share;
445,000 shares of our common stock issuable upon the exercise of warrants outstanding as of September 30, 2015, having an exercise price of $6.39 per share;
40,000 shares issuable upon conversion of our outstanding shares of Series E convertible preferred stock; and
an aggregate of 8,453,074 shares of our common stock reserved for future issuance as of September 30, 2015 under our 2009 Stock Incentive Plan and 2009 Employee Stock Purchase Plan.
PRICE RANGE OF COMMON STOCK
Our common stock is listed on the NASDAQ under the symbol “SPPI.” The following table shows the high and low per share closing sale prices of our common stock for the periods indicated.
|
| | | | | | | |
| | High | | Low |
| Year Ended December 31, 2015: | | | |
| First Quarter | $ | 7.66 |
| | $ | 5.95 |
|
| Second Quarter | $ | 7.37 |
| | $ | 5.65 |
|
| Third Quarter | $ | 7.60 |
| | $ | 5.92 |
|
| Fourth Quarter (through December 22, 2015) | $ | 6.93 |
| | $ | 5.07 |
|
| Year Ended December 31, 2014: | | | |
| First Quarter | $ | 10.24 |
| | $ | 7.72 |
|
| Second Quarter | $ | 8.68 |
| | $ | 6.65 |
|
| Third Quarter | $ | 8.90 |
| | $ | 6.89 |
|
| Fourth Quarter | $ | 8.24 |
| | $ | 6.75 |
|
| Year Ended December 31, 2013: | |
| | |
|
| First Quarter | $ | 13.01 |
| | $ | 7.01 |
|
| Second Quarter | $ | 8.55 |
| | $ | 7.00 |
|
| Third Quarter | $ | 8.89 |
| | $ | 7.29 |
|
| Fourth Quarter | $ | 9.82 |
| | $ | 8.11 |
|
On December 22, 2015, the closing price of our common stock on the NASDAQ was $5.98 per share, and there were 405 holders of record of our common stock.
DIVIDEND POLICY
We do not currently anticipate declaring or paying cash dividends on our capital stock in the foreseeable future. We currently intend to retain all of our future earnings, if any, to finance the operation and expansion of our business. Any future determination relating to our dividend policy will be made at the discretion of our board of directors andactual expenditures will depend on a number ofnumerous factors, including future earnings, capital requirements, future prospects, contractual restrictionsour development and covenantscommercialization efforts, as well as the amount of cash used in our operations. We therefore cannot estimate with certainty the amount of net proceeds to be used for the purposes described above. We may find it necessary or advisable to use the net proceeds for other purposes, and other factors that our boardwe will have broad discretion in the application of directors may deem relevant.the net proceeds. Pending the uses described above, we plan to invest the net proceeds from this offering in short-term, investment-grade, interest-bearing securities.
SA- 7
DESCRIPTION OF CAPITAL STOCK
The following description of our capital stock is intended as a summary only and therefore is not a complete description of our capital stock. This description is based upon, and is qualified by reference to, our certificate of incorporation as amended, or amended certificate of incorporation, our second amended and restated bylaws, or amended bylaws and applicable provisions of Delaware corporate law. You should read our amended certificate of incorporation and amended bylaws, which are filed as exhibits to the registration statement of which this prospectus forms a part, for the provisions that are important to you. WE MAY OFFER
General
Our authorized capital stock consists of 175,000,000300,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share.
The following description of our common stock and preferred stock summarizes the material terms and provisions of these types of securities, but it is not complete. For the complete terms of our common stock and preferred stock, please refer to our restated certificate of incorporation and our third amended and restated bylaws that are incorporated by reference into the registration statement which includes this prospectus and, with respect to preferred stock, any certificate of designation that we may file with the SEC for a series of preferred stock we may designate, if any.
Common Stock
As of December 23, 2015,April 2, 2019, there were 68,184,720111,835,624 shares of our common stock outstanding. The holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. The holders of common stock are not entitled to cumulative voting rights with respect to the election of directors, and as a consequence, minority stockholders will not be able to elect directors on the basis of their votes alone.
Subject to preferences that may be applicable to any then outstanding shares of preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available therefor. In the event of a liquidation, dissolution or winding up of us, holders of the common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any then outstanding shares of preferred stock. Holders of common stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to our common stock. All outstanding shares of common stock are, and all shares of common stock to be issued under this prospectus will be, fully paid and non-assessable. The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any of our outstanding preferred stock.
Listing
Our common stock is listed under the symbol “SPPI” on the NASDAQ.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
Dividends
We have not declared any cash dividends on our common stock since 2012 and we do not anticipate paying any cash dividends on our common stock in the foreseeable future.
Stockholder Rights PlanAgreement
On November 29, 2010, our board of directors approved a stockholder rights agreement, effective December 13, 2010, we adopted aor the Stockholder Rights Plan pursuantAgreement. A stockholder rights agreement is designed to which we have distributed rightsdeter coercive, unfair, or inadequate takeovers and other abusive tactics that might be used in an attempt to purchase unitsgain control of our Series B Junior Participating Preferred Stock.company. The rights become exercisable upon the earlier of ten days after a person or group of affiliated or associated persons has acquired 15% or more of the outstanding shares of our common stock or ten business days after a tender offer has commenced that would result in a person or group beneficially owning 15% or more of our outstanding common stock, other than pursuant to a transaction approved in advance by our Board of Directors. The description and terms of the rights are set forth in aStockholder Rights Agreement between uswill not prevent takeovers at a full and ComputerShare Trust Company, N.A.,fair price, but rather is designed to deter coercive takeover tactics and to encourage anyone attempting to acquire our company to first negotiate with our board of directors.
On March 27, 2018, we entered into a Second Amendment to the Stockholder Rights Agreement which had the effect of suspending the Stockholders Rights Agreement as rights agent.of March 30, 2018, though it will expire under its terms on December 13, 2020.
Preferred Stock
We are authorized to issue a total of 5,000,000 shares of preferred stock. Of the 5,000,000 authorizedAs of April 2, 2019, there were no shares of preferred stock we are authorized to issue 1,500,000 shares of Series B Junior Participating Preferred Stock and 2,000 shares of Series E Convertible Voting Preferred Stock. As of December 23, 2015, 20 shares of Series E Convertible Voting Preferred Stock were issued and outstanding. These shares are convertible into 40,000 shares of common stock. There are no dividends payable on the Series E Convertible Voting Preferred Stock.
Each share of Series E Convertible Voting Preferred Stock has a liquidation preference equal to 120% of the stated value of $10,000 plus any declared and unpaid dividends on such share, subject to adjustment in certain circumstances.
Holders of our Series E Convertible Voting Preferred Stock have full voting rights and powers equal to the voting rights and powers of holders of common stock, and are entitled to the number of votes equal to the number of shares of common stock into which their shares of Series E Convertible Voting Preferred Stock can be converted. Pursuant to the Certificate of Designation for the Series E Convertible Voting Preferred Stock, the number of shares of our common stock that may be acquired by any holder of Series E Convertible Voting Preferred Stock upon any conversion of the preferred stock, or that shall be entitled to voting rights, is limited to the extent necessary to ensure that following such conversion, the number of shares of our common stock then beneficially owned by such holder and any other person or entities whose beneficial ownership of common stock would be aggregated with the holder’s for purposes of the Exchange Act does not exceed 4.95% of the total number of shares of our common stock then outstanding.
Preferred stock may be issued from time to time, in one or more series, with specified rights, powers, preferences and limitations, as authorized by the board of directors.directors without stockholder approval. If offered, the prospectus supplement relating to the preferred shares offered thereby will include specific terms of any preferred shares offered.
Possible Anti-Takeover Provisions
Our amended certificateEffects of incorporation and amended and restated bylaws contain provisions that, together with the ownership position of the officers, directors and their affiliates, could discourage potential takeover attempts and make it more difficult for stockholders to change management, which could adversely affect the market price of our common stock.
Our amended certificate of incorporation limits the extent to which our directors are personally liable to usDelaware Law and our stockholders, to the fullest extent permitted byCharter Documents
Provisions of the Delaware General Corporation Law, or DGCL.DGCL, our restated certificate of incorporation, and our third amended and restated bylaws, could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that our board of directors may consider inadequate and to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.
Delaware Anti-Takeover Statute
We are subject to Section 203 of the DGCL, an anti-takeover statute. In general, Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the time the person became an interested stockholder, unless the business combination or the acquisition of shares that resulted in a stockholder becoming an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns (or within three years prior to the determination of interested stockholder status did own) 15% or more of a corporation’s voting stock. The inclusionexistence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our board of directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by our stockholders.
Election and Removal of Directors
Our board of directors is elected annually by all holders of our capital stock. The stockholders may nominate one or more persons for election as directors at an annual meeting of stockholders, but only if written notice of such stockholder’s intent to make such nomination or nominations has been received by the Secretary of the Company not less than ninety (90) nor more than one hundred twenty (120) days prior to the first anniversary of the preceding year’s annual meeting of stockholders. Any vacancy on the board of directors resulting from death, resignation, removal or otherwise or newly created directorships may be filled by the vote of the majority of directors then in office, although less than a quorum, or by a sole remaining director.
Amendment
The affirmative vote of a majority of the entire board of directors may amend and repeal the bylaws. The bylaws may be altered, amended or repealed, and new bylaws may be adopted, at any annual meeting of the stockholders (or at any special meeting thereof duly called for that purpose) by a majority of the combined voting power of the then outstanding shares of capital stock of all classes and series of the Company entitled to vote generally in the election of directors, voting as a single class, provided that, in the notice of any such special meeting, notice of such purpose shall be given.
Size of Board and Vacancies
Pursuant to our restated certificate of incorporation, may reduceand our third amended and restated bylaws, our board of directors has the likelihoodexclusive right to fix the size of derivative litigation against directorsthe board and may discourageto fill any vacancies resulting from death, resignation, disqualification or deter stockholders or managementremoval as well as any newly created directorships arising from bringing a lawsuit against directors for breachan increase in the size of their duty of care.the board.
Special Stockholder Meetings
Our third amended and restated bylaws provide that special meetings of stockholders can be called only by the board of directors, the chairman of the board of directors or the chief executive officer. Stockholders are not permitted to call a special meeting and cannot require the board of directors to call a special meeting. There is no right of stockholders to act by written consent without a meeting, unless the consent is unanimous.
Stockholder Action by Unanimous Written Consent
Any vacancy on the board of directors resulting from death, resignation, removal or otherwise or newly created directorshipsaction which may be filled onlytaken at any annual or special meeting of stockholders, may be taken without a meeting and without prior notice, if a consent in writing or by voteelectronic communication, setting forth the action so taken, is given by the holders of all of the majorityoutstanding shares entitled to vote thereon.
Requirements for Advance Notification of directors then in office, or by a sole remaining director. Stockholder Nominations and Proposals
Our third amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors except forother than nominations made by or at the direction of theour board of directors or a committee of our board of directors.
No Cumulative Voting
The DGCL provides that stockholders are denied the board.
In additionright to cumulate votes in the election of directors unless our rights plan, our amended certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation does not provide for cumulative voting.
Authorized but Unissued Shares
Our authorized but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval. We may use additional shares for a variety of purposes, including future public offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued shares of undesignated preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of us or our stockholders, our board of directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquirer, stockholder or stockholder group. The rights of holders of our common stock described above will be subject to, and may be adversely affected by, the rights of any preferred stock that we may designate and issue in the future. The issuance of shares of undesignated preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.
Director Liability
Our third amended and restated bylaws certain provisionslimit the extent to which our directors are personally liable to us and our stockholders, to the fullest extent permitted by the DGCL. The inclusion of Delaware lawthis provision in our third amended and restated bylaws may makereduce the acquisitionlikelihood of derivative litigation against directors and may discourage or deter stockholders or management from bringing a lawsuit against directors for breach of their duty of care.
DILUTION
If you invest in our common stock, your ownership interest will be diluted to the extent of the company by tender offer, a proxy contest or otherwise, ordifference between the removalpublic offering price per share and the as-adjusted net tangible book value per share after this offering.
The net tangible book value of our officerscommon stock on December 31, 2018, was approximately $153.6 million, or $1.39 per share of common stock. We calculate net tangible book value per share by dividing the net tangible book value, which is tangible assets less total liabilities, by the number of outstanding shares of our common stock. Dilution with respect to net tangible book value per share represents the difference between the amount per share paid by purchasers of shares of common stock in this offering and directors, more difficult. For example, we are subjectthe net tangible book value per share of our common stock immediately after this offering.
After giving effect to the “business combination” statutesale of our common stock pursuant to this prospectus in the aggregate amount of $150 million at an assumed offering price of $10.59 per share, the last reported sale price of our common stock on the NASDAQ on April 2, 2019, and after deducting commissions, which, for purposes of estimating dilution per share to new investors in this offering, we have assumed to be 3.0% of the DGCL. Section 203gross sales price per share sold, and estimated aggregate offering expenses payable by us, our net tangible book value as of December 31, 2018 would have been approximately $298.9 million, or $2.40 per share of common stock. This represents an immediate increase in the DGCL prohibits certain publicly-held Delaware corporations from engagingnet tangible book value of $1.01 per share to our existing stockholders and an immediate dilution in net tangible book value of $8.19 per share to new investors. The following table illustrates this per share dilution:
|
| | |
| Assumed offering price per share | | $10.59 |
| Net tangible book value per share as of December 31, 2018 | $1.39 | |
| Increase in net tangible book value per share after this offering | $1.01 | |
| As-adjusted net tangible book value per share after this offering | | $2.40 |
| Dilution per share to new investors in this offering | | $8.19 |
The above discussion and table are based on 110,525,141 shares of our common stock outstanding as of December 31, 2018 and excludes the following:
6,843,585 shares of our common stock issuable upon the exercise of options outstanding as of December 31, 2018, having a business combination with weighted average exercise price of $8.98 per share;
1,802,130 shares of common stock issuable upon the vesting and settlement of outstanding restricted stock awards, outstanding as of December 31, 2018, having a weighted average grant date fair value of $12.75 per share;
255,214 shares of common stock issuable upon the vesting and settlement of outstanding restricted stock units, outstanding as of December 31, 2018, having a weighted average grant date fair value of $17.91 per share; and
an interested stockholderaggregate of 26,452,487 shares of our common stock reserved for a periodfuture issuance as of three years followingDecember 31, 2018 under our 2018 Long-Term Incentive Plan and 2009 Employee Stock Purchase Plan.
To the time such person became an interested stockholder unless the business combination is approved in a specified manner. Generally, an interested stockholder is a person who, together with its affiliates and associates, owns 15% or moreextent that any of the corporation’s voting stock, or is affiliated with the corporation and owns or owned 15% of the corporation’s voting stock within three years before the business combination.these outstanding options are exercised, there will be further dilution to new investors.
SA- 9
PLAN OF DISTRIBUTION
We have entered into a sales agreementthe Sales Agreement with FBR, MLV, and HCW,the Sales Agents on December 23, 2015April 5, 2019, under which we may offer and sell up to $100,000,000$150,000,000 of shares of our common stock from time to time through the sales agents,Sales Agents, acting as agents. Sales of shares of our common stock, if any, under this prospectus may be made in negotiated transactions or transactions that areat market prices by any method deemed to be an “at the market offerings”market” offering as defined in Rule 415415(a)(4) under the Securities Act, including, without limitation, sales made directly on the NASDAQ or any other existing trading market for our common stock or sales madestock.
We may instruct the Sales Agents not to or through a market maker other than on an exchange.
Under the terms of the sales agreement, we may also sell our common stock to either or all ofif the sales agents, as principals for their own accounts,cannot be effected at aor above the price negotiated atdesignated by us from time to time. We or the timeSales Agents may suspend the offering of sale. If we sell sharescommon stock upon notice and subject to any sales agent in this manner, we will enter into a separate agreement setting forth the terms of such transaction, and we will describe the agreement in a separate prospectus supplement or pricing supplement.other conditions.
We will pay the sales agentsSales Agents commissions, in cash, for their services infor acting as agentsa Sales Agent in the sale of our common stockstock. The Sales Agents will be entitled to compensation at a fixed commission rate of up to 3.0% of the gross salesales price per share sold. We have also agreed to reimburse the Sales Agents for certain specified expenses, including the fees and disbursements of their legal counsel, in an amount not to exceed $50,000. We estimate that the total expenses for the offering, excluding compensation and reimbursementsreimbursement payable to the sales agentsSales Agents under the sales agreement,terms of the Sales Agreement, will be approximately $90,000. We have also agreed$213,000. Because there is no minimum offering amount required as a condition to reimburseclose this offering, the sales agents their reasonable out-of-pocket expenses, including attorney’s fees, in anactual total public offering amount, commissions and proceeds to us, if any, are not to exceed $25,000.determinable at this time.
Settlement for sales of our common stock will occur on the third businesssecond trading day following the date on which any sales are made, or on some other date that is agreed upon by us and the sales agentsSales Agents in connection with a particular transaction, in return for payment of the net proceeds to us. Sales of our common stock as contemplated in this prospectus will be settled through the facilities of The Depository Trust Company or by such other means as we and the Sales Agents may agree upon. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.
The Sales Agents will use their commercially reasonable efforts, consistent with their sales and trading practices, to solicit offers to purchase shares of our common stock under the terms and subject to the conditions set forth in the Sales Agreement. In connection with the sale of theshares of our common stock on our behalf, each of FBR, MLV, and HCW willthe Sales Agents may be deemed to be an underwriter“underwriter” within the meaning of the Securities Act and the compensation of the sales agents willSales Agents may be deemed to be underwriting commissions or discounts. We have agreed to provide indemnification and contribution to the sales agentsSales Agents against certain civil liabilities, including liabilities under the Securities Act.
The offering pursuant to the sales agreementSales Agreement will terminate upon the earlier of (1) the issuance and sale of all shares or our common stock subject to the sales agreement; and (2) the termination of the sales agreementSales Agreement as permitted therein.
MLV is an affiliate of FBR Capital Markets & Co. We and the Sales Agents may each terminate the Sales Agreement at any time upon ten days’ prior notice.
The prospectus in electronic format may be made available on websites maintained by each sales agent.
The sales agentsSales Agents and their affiliates have in the past and may in the future provide various investment banking and other financial services for us and our affiliates, for which services they may in the future receive customary fees. To the extent required by Regulation M, the sales agentsSales Agents will not engage in any market making activities involving our common stock while the offering is ongoing under this prospectus supplement. prospectus.
This summary of the material provisions of the sales agreementSales Agreement does not purport to be a complete statement of its terms and conditions. A copy of the sales agreementSales Agreement is filed as an exhibit to the registration statement of which this prospectus forms a part and is incorporated by reference in this prospectus.
This prospectus in electronic format may be made available on a website maintained by each of the Sales Agents and the Sales Agents may distribute this prospectus electronically.
LEGAL MATTERS
Certain legal mattersThe validity of the securities being offered hereby will be passed upon for uson by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach,Paul Hastings, LLP, San Diego, California. Certain legal matters will be passed upon for FBR, MLV, and HCWThe Sales Agentsare being represented in connection with this offering by LeClairRyan, A Professional Corporation,Cooley LLP, New York, New York.
EXPERTS
The consolidated financial statements, and the related financial statement schedule, incorporated in this prospectus by reference from the Company’s Annual Report on Form 10-K, for the year ended December 31, 2014, and the effectiveness of Spectrum Pharmaceuticals, Inc.’s and its subsidiaries’ internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports, which are incorporated herein by reference. Such consolidated financial statements and financial statement schedulesschedule have been so incorporated in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Ernst & Young LLP, independent registered public accounting firm, has audited our consolidated financial statements included in our Annual Report on Form 10-K for the years ended December 31, 2013 and 2012, as set forth in their report, which is incorporated by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated by reference in reliance on Ernst & Young LLP's report, given on their authority as experts in accounting and
auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are a reporting company and file annual, quarterly and current reports, proxy and information statements and other information with the SEC. This prospectus is part of a registration statement on Form S-3 that we have filed with the SEC registeringrelating to the securities that mayto be offered and sold hereunder. Theunder this prospectus. This prospectus does not contain all of the information set forth in the registration statement includingand the exhibits thereto, contains additional relevantto the registration statement. For further information aboutwith respect to us and thesethe securities that,to be offered under this prospectus, we refer you to the registration statement and the exhibits and schedules filed as permitted by the rules and regulations of the SEC, we have not included in this prospectus. A copya part of the registration statement can be obtained at the address set forth below. You should read the registration statement for further information about us and these securities.
We file annual, quarterly and special reports, proxy statements and other information with the SEC under the Exchange Act. You may read and copy this information at the following SEC location:
Public Reference Room
100 F Street, N.E.
Washington, D.C. 20549
You may obtain information on the operation of the Public Reference Room by calling the SEC at (800) SEC-0330.statement. The SEC also maintains a weban internet site that contains reports, proxy statements,and information statements, and other information aboutregarding issuers like Spectrum Pharmaceuticals, Inc., whothat file electronically with the SEC.SEC, where you may read and copy the registration statement, as well as our reports, proxy and information statements and other information. The address of thatthe SEC’s web site is www.sec.gov.
www.sec.gov. We maintain a website at www.spprix.com. Information contained in or accessible through our website does not constitute a part of this prospectus.
In addition, our common stock is listed on the NASDAQ and similar information concerning us can be inspected and copied at the offices of The Nasdaq Stock Market, One Liberty Plaza, 165 Broadway, New York, NY 10006.
SA- 11
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
This prospectus is part of a registration statement on Form S-3S-3ASR filed by us with the SEC. This prospectus does not contain all of the information set forth in the registration statement, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For further information about us and the securities offered by this prospectus, we refer you to the registration statement and its exhibits and schedules which may be obtained as described herein.
The SEC allows us to “incorporate by reference” information into this prospectus. This means that we can disclose important information about us and our financial condition to you by referring you to another document filed separately with the SEC. The information incorporated by reference is considered to be part of this prospectus. This prospectus incorporates by reference the documents listed below that we have previously filed with the SEC:
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2014,2018, as filed with the SEC on March 13, 2015;February 28, 2019;
Our Definitive Proxy Statement on Schedule 14A, as filed with the SEC on April 30, 2015;
Our Quarterly ReportsMay 7, 2018 (to the extent incorporated by reference into Part III of our Annual Report on Form 10-Q10-K for the fiscal quarteryear ended MarchDecember 31, 2015, as filed with the SEC on May 8, 2015, for the fiscal quarter ended June 30, 2015, as filed with the SEC on August 7, 2015, and for the fiscal quarter ended September 30, 2015, as filed with the SEC on November 6, 2015;2017);
Our Current Reports on Form 8-K, as filed with the SEC on February 20, 2015, July 2 ,2015,June 18, 2018, November 18, 2015, November 25, 201513, 2018, January 17, 2019 and DecemberMarch 7, 2015;2019; and
The description of our common stock contained in the Registration of Securities of Certain Successor Issuers filed pursuant to Section 12(g) of the Exchange Act on Form 8-B on June 27, 1997, including any amendment or reports filed for the purpose of updating such description; and
The description of our Rights to Purchase Series B Junior Participating Preferred Stock contained in the Registration of Certain Classes of Securities filed pursuant to Section 12(b) of the Exchange Act on Form 8-A on December 13, 2010, including any amendment or reports filed for the purpose of updating such description.
We also incorporate by reference into this prospectus all documents that we may filefiled by us with the SEC after the date of this prospectus pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act and prior to the sale of all securities registered hereunder or termination of the registration statement.any offering of securities made by this prospectus. Nothing in this prospectus shall be deemed to incorporate information furnished but not filed with the SEC (including without limitation, information furnished under Item 2.02 or Item 7.01 of Form 8-K, and any exhibits relating to such information).
Any statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein or in the applicable prospectus supplement or in any other subsequently filed document which also is or is deemed to be incorporated by reference modifies or supersedes the statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
You may request a copy of the filings incorporated herein by reference, including exhibits to such documents that are specifically incorporated by reference, at no cost, by writing or calling us at the following address or telephone number:
Spectrum Pharmaceuticals, Inc.
11500 South Eastern Avenue, Suite 240
Henderson, Nevada 89052
Telephone: (702) 835-6300
Attention: Investor Relations
Statements contained in this prospectus as to the contents of any contract or other documents are not necessarily complete, and in each instance investors are referred to the copy of the contract or other document filed as an exhibit to the registration statement, each such statement being qualified in all respects by such reference and the exhibits and schedules thereto.
$100,000,000
Common Stock
FBRMLV & Co.H.C. Wainwright & Co.
Up to $150,000,000
______________________Common Stock
PROSPECTUS |
| | |
| Cantor Fitzgerald & Co. | H.C. Wainwright & Co. | B. Riley FBR |
______________________April 5, 2019
, 2015
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14.Other Expenses of Issuance and Distribution.Distribution.
The following table sets forth all costs and expenses, other than underwriting discounts and commissions, payable by us in connection with the sale of the common stock being registered hereunder. All of the amounts shown shall be paid by us and are estimates except for the SEC registration fee, which was previously paid.
|
| | | |
| SEC Registration Fee | $ | 13,950 |
|
| Accounting Fees and Expenses | * |
|
| Legal Fees and Expenses | * |
|
| Printing and Related Expenses | * |
|
| Miscellaneous | * |
|
| Total | $ * |
|
|
| |
| SEC Registration Fee | $18,180* |
| FINRA Filing Fee | ** |
| Accounting Fees and Expenses | ** |
| Legal Fees and Expenses | ** |
| Printing and Related Expenses | ** |
| Transfer Agent and Trustee Fees | ** |
| Miscellaneous | ** |
| Total | $ ** |
* In accordance with Rules 456(b) and 457(r), we are deferring payment of all applicable registration fees for the securities offered under this registration statement, except for $18,180, related to $150,000,000 of the registrant’s common stock that may be issued and sold under a certain sales agreement with Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC and B. Riley FBR, Inc.
** The amount of securities and number of offerings are indeterminable and the expenses cannot be estimated at this time.
Item 15. Indemnification of Directors and Officers.Officers.
We are a Delaware corporation.incorporated under the laws of the state of Delaware. Section 145(a) of the Delaware General Corporation Law, or the DGCL, provides that a Delaware corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative other(other than an action by or in the right of the corporation,corporation) by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneyattorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
Section 145(b) of the DGCL provides that a Delaware corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person acted in anyis or was a director, officer, employee or agent of the capacities set forth above,corporation, or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem proper.
Further subsections of DGCL Section 145 provide that:
(1)to the extent a present or former director or officer of a corporation has been successful on the merits or otherwise in the defense of any action, suit or proceeding referred to in subsections (a) and (b) of Section 145 or in the defense of any claim, issue or matter therein, such person shall be indemnified against expenses, including attorneys’ fees, actually and reasonably incurred by such person in connection therewith;
(2) the indemnification and advancement of expenses provided for pursuant to Section 145 shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise; and
(3) the corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against any liability
asserted against such person and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not the corporation would have the power to indemnify such person against such liability under Section 145.
Section 145 of the DGCL makes provision for the indemnification of officers and directors in terms sufficiently broad to indemnify our officers and directors under certain circumstances from liabilities (including reimbursement for expenses incurred) arising under the Securities Act of 1933. Our amended certificate of incorporation andthird amended and restated bylaws provide, in effect, that, to the fullest extent and under the circumstances permitted by Section 145 of the DGCL, we will indemnify any person (and the estate of any person) who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director or officer of our company or is or was serving at our request as a director or officer of another corporation or enterprise. We may, in our discretion, similarly indemnify its employees and agents.
We have entered into indemnification agreements with our officers and directors.
Our amended and restated bylaws relievecertificate of incorporation relieves our directors from monetary damages to us or our stockholders for breach of such director’s fiduciary duty as a director to the fullest extent permitted by the DGCL. Under Section 102(b)(7) of the DGCL, a corporation may relieve its directors from personal liability to such corporation or its stockholders for monetary damages for any breach of their fiduciary duty as directors except (i) for a breach of the duty of loyalty, (ii) for acts or omissions not in good faith, or which involve intentional misconduct or a knowing violation of law, (iii) for willful or negligent violations of certain provisions in the DGCL imposing certain requirements with respect to stock repurchases, redemptions and dividends, or (iv) for any transactions from which the director derived an improper personal benefit.
We currently maintain an insurance policy which, within the limits and subject to the terms and conditions thereof, covers certain expenses and liabilities that may be incurred by directors and officers in connection with proceedings that may be brought against them as a result of an act or omission committed or suffered while acting as a director or officer of our company.
Item 16. Exhibits.Exhibits.
See the Exhibit Index attached to this registration statement and incorporated herein by this reference.
Item 17. Undertakings.Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or any decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
Provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is a part of the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-
effectivepost-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrants pursuant to the foregoing provisions described in Item 15, or otherwise, the registrants have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrants of expenses incurred or paid by a director, officer or controlling person of any registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, each appropriate registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
(d) The undersigned registrants hereby undertake to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Commission under section 305(b)(2) of the Trust Indenture Act.
EXHIBIT INDEX
|
| |
Exhibit
Number | Exhibit |
| 1.1* | Form of Underwriting Agreement |
| 1.2+ | |
| 3.1 | |
| 3.2 | |
| 4.1 | |
| 4.2 | |
| 4.3 | |
| 4.4+ | |
| 4.5+ | |
| 4.6* | Form of Warrant Certificate. |
| 4.7* | Form of Warrant Agreement. |
| 4.8* | Form of Unit Agreement. |
| 5.1+ | |
| 23.1+ | |
| 23.3+ | Consent of Paul Hastings, LLP, (contained in Exhibit 5.1.) |
| 24.1+ | Power of Attorney. |
| 25.l† | Form T-l Statement of Eligibility and Qualification of the Trustee under the Indenture with respect to the debt securities. |
| |
| + | Filed herewith. |
| * | To be filed by amendment hereto or pursuant to a Current Report on Form 8-K to be incorporated herein by reference. |
| † | To be filed by amendment or pursuant to Trust Indenture Act Section 305(b)(2), if applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Henderson, State of Nevada, on December 23, 2015.April 5, 2019.
By: | |
| By: | /s/ Joseph W. Turgeon
Joseph W. Turgeon
President and Chief Executive Officer/s/ Rajesh C. Shrotriya, M.D. Rajesh C. Shrotriya, M.D.
Chairman of the Board and Chief Executive Officer
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POWER OF ATTORNEY
The undersigned directorsKNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and officers of Spectrum Pharmaceuticals, Inc. hereby constitute and appoint Rajesh C. Shrotriya, M.D. andappoints Kurt A. Gustafson and Keith McGahan, and each of them acting individually, as his or her true and lawful attorneys-in-factattorneys- in-fact and agents,agent, with full power of each to act without the other andalone, with full powerpowers of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement (including post-effective amendments and newany registration statements relatingstatement for the same offering that is to this Form S-3,be effective under Rule 462(b) of the Securities Act), and to file the same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises,connection therewith, as fully tofor all intents and purposes as he or she might or could do in person, hereby ratifying and confirming that all that said attorneys-in-fact and agents, or eitherany of them or their or his substitute or substitutes,resubstitute, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statementRegistration Statement has been signed by the following persons in the capacities and on the date indicated.
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| Signature | | Title | | Date |
/s/ Rajesh C. Shrotriya, M.D. Rajesh C. Shrotriya, M.D.
Joseph W. Turgeon | | Chairman of the Board and Chief Executive Officer (Principal (Principal Executive Officer)
| December 23, 2015 | April 5, 2019 |
/s/ Kurt A. Gustafson Kurt A. Gustafson
| | Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
| December 23, 2015 | April 5, 2019 |
/s/ Stuart M. Krassner | | Director | | April 5, 2019 |
/s/ Dolatrai M. Vyas Ph.DDolatrai M. Vyas, Ph.D
| | Director | December 23, 2015 | April 5, 2019 |
/s/ Gilles Gagnon Gilles Gagnon, M.Sc., M.B.A.
Bernice R. Welles | | Director | December 23, 2015 | April 5, 2019 |
/s/ Raymond W. Cohen Raymond W. Cohen
| | Director | December 23, 2015 | April 5, 2019 |
/s/ Stuart M. Krassner, Sc.D., Psy.D. Stuart M. Krassner, Sc.D., Psy.D.
Gilles R. Gagnon | | Director | December 23, 2015 | April 5, 2019 |
/s/ Luigi Lenaz, M.D. Luigi Lenaz, M.D.
Jeffrey L. Vacirca | | Director | December 23, 2015 | April 5, 2019 |
/s/ Anthony E. Maida III, M.A., M.B.A., Ph.D. Anthony E. Maida, III, M.A., M.B.A.,Ph.D.
| | Director | December 23, 2015 |
EXHIBIT INDEX
| April 5, 2019 |
| /s/ William L. Ashton | |
Exhibit Number | Exhibit |
1.1**Director | Form of Underwriting Agreement |
1.2+ | At Market Issuance Sales Agreement dated as of December 23, 2015 among Registrant FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. |
3.1 | Certificate of Incorporation, as amended through June 24, 2011. (Filed as Exhibit 3.1 to Form 10-K, as filed with the Securities and Exchange Commission on March 2, 2012, and incorporated herein by reference.) |
3.2 | Second Amended and Restated Bylaws. (Filed as Exhibit 3.2 to Form 8-K, as filed with the Securities and Exchange Commission on August 8, 2012, and incorporated herein by reference.) |
4.1 | Rights Agreement, dated as of December 13, 2010, between the Registrant and ComputerShare Trust Company, N.A. (formerly U.S. Stock Transfer Corporation), as Rights Agent, which includes as Exhibit A thereto the form of Certificate of Designation for the Series B Junior Participating Preferred Stock, as Exhibit B thereto the Form of Rights Certificate and as Exhibit C thereto a Summary of Rights of Stockholder Rights Plan. (Filed as Exhibit 4.1 to Form 8-K, as filed with the Securities and Exchange Commission on December 13, 2010, and incorporated herein by reference.) |
4.2+ | Form of Indenture. |
4.3** | Form of Debt Security. |
4.4** | Form of Warrant Certificate. |
4.5** | Form of Warrant Agreement. |
4.6** | Form of Unit Agreement. |
5.1+ | Opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation. |
12.1+ | Statement Regarding the Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend. |
23.1+ | Consent of Deloitte & Touche LLP, independent registered public accounting firm. |
23.2+ | Consent of Ernst & Young LLP, independent registered public accounting firm. |
23.3+ | Consent of Stradling Yocca Carlson & Rauth, a Professional Corporation. (contained in Exhibit 5.1.) |
24.1 + | Power of Attorney. (contained on page II-5 of this registration statement.) |
25.1† | Form T-1 Statement of Eligibility and Qualification of the Trustee under the Indenture with respect to the debt securities. |
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+ | Filed herewith. |
** | To be filed by amendment hereto or pursuant to a Current Report on Form 8-K to be incorporated herein by reference. |
† | To be filed by amendment or pursuant to Trust Indenture Act Section 305(b)(2), if applicable.April 5, 2019 |