Zosano Announces Pricing of Public Offering of Common Stock

FREMONT, Calif., March 17, 2017 -- Zosano Pharma Corporation (NASDAQ:ZSAN), an emerging CNS company focusing on developing an acute migraine treatment with a differentiated efficacy profile using the Company’s proprietary transdermal delivery system, today announced the pricing of an underwritten public offering of 17,000,000 shares of its common stock at a price of $1.50 per share.

All shares in the offering are being sold by Zosano, with expected gross proceeds to Zosano of $25.5 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Zosano.  The offering is expected to close on or about March 23, 2017, subject to the satisfaction of customary closing conditions.

In addition, Zosano has granted the underwriters a 30-day option to purchase up to 2,550,000 additional shares of common stock at the public offering price, less the underwriting discount.

Zosano intends to use the net proceeds of the proposed offering to fund the manufacture of its lead product candidate, M207, in sufficient quantities to support its long term safety study and associated regulatory activities necessary to file for product approval, and to fund a portion of the long term safety study itself.

Piper Jaffray & Co. and Guggenheim Securities, LLC are acting as joint book-running managers for the offering.

The offering is being made by Zosano pursuant to a registration statement on Form S-1 previously filed with the Securities and Exchange Commission (the “SEC”) on March 2, 2017, as amended on March 13, 2017, and declared effective by the SEC on March 17, 2017. The offering is being made only by means of a written prospectus that forms a part of the registration statement. A preliminary prospectus related to the offering has been filed with the SEC and is available on the website of the SEC at www.sec.gov. When available, copies of the final prospectus may be obtained from Piper Jaffray & Co. at 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attention: Prospectus Department, or by calling (800) 747-3924, or by emailing [email protected] or by contacting Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, NY 10017, or by telephone at (212) 518-9658, or by email to [email protected].

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

About Zosano Pharma

Zosano Pharma Corporation is an emerging CNS company focusing on providing rapid symptom relief to patients using known therapeutics and altering their delivery profile using the Company’s proprietary transdermal delivery system. The Company’s goal is to make transdermal drug delivery a standard of care for delivering drugs requiring fast onset of action. Zosano Pharma has developed its proprietary transdermal delivery system to administer novel formulations of existing drugs through the skin for the treatment of a variety of indications.  The Company believes that its transdermal delivery system offers rapid and consistent drug delivery combined with ease of use.  The Company is focused on developing products that deliver established molecules with known safety and efficacy profiles for markets where patients remain underserved by existing therapies.  Zosano Pharma anticipates that many of its current and future development programs may enable the Company to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization. Learn more at www.zosanopharma.com.

Forward-Looking Statements

This press release includes statements about future expectations, plans and prospects for the Company, including the Company’s expectations regarding the completion, timing and size of the proposed public offering, the Company’s anticipated proceeds from the offering and its use of those proceeds. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These risks and uncertainties include, without limitation, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering, as well as other risks and uncertainties discussed in the Risk Factors set forth in the Company's most recent annual report on Form 10-K, as amended. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot in any way guarantee that the future results, level of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. All forward-looking statements are based on information currently available to Zosano and Zosano assumes no obligation to update any such forward-looking statements.

Zosano Contact:
Konstantinos Alataris, Ph.D.
Chief Executive Officer
510-745-1200

Investor Contact:
Jamien Jones
Blueprint Life Science Group
415-375-3340 x 5
[email protected]