Investor Alert: Berman Tabacco Investigates Potential Securities Law Violations By Adamis Pharmaceuticals Corporation (ADMP) In Connection With U.S. Attorney's Criminal Investigation
Boston, Massachusetts--(Newsfile Corp. - May 25, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential violations of the federal securities laws by Adamis Pharmaceuticals Corporation (NASDAQ: ADMP) ("Adamis" or the "Company"). Adamis purports to be "a specialty biopharmaceutical company primarily focused on developing and commercializing products in various therapeutic areas, including allergy, opioid overdose, respiratory and inflammatory disease." The Company is based in San Diego, California.
On January 29, 2021, Adamis announced "the pricing of [an] underwritten public offering of 40,540,540 shares of its common stock at a public offering price of $1.11 per share, resulting in gross proceeds of approximately $45,000,000, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the company," (the "Offering").
On March 31, 2021, Adamis filed a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission ("SEC") stating that the Company "needs additional time to prepare and review certain information and complete its review of its financial statements and other disclosures in the Form 10-K, including without limitation regarding matters relating to warrant liability expense and change in fair value of warrants and the assessment of the impairment of its goodwill and indefinite-lived intangible assets, and the audit procedures related to the foregoing, which could not be completed by the date required without incurring unreasonable effort and expense."
On April 15, 2021, Adamis filed its Annual Report on Form 10-K ("Annual Report") with the SEC. In the Annual Report, the Company disclosed that "because of the misapplication of valuation principles used to determine the fair value of the Company's warrant liabilities and related changes in fair value of these warrant liabilities relating to warrants issued by the Company in August 2019 … and February 2020 …, the Company's previous quarterly and year-to-date unaudited condensed consolidated financial statements for the periods ended March 31, 2020, June 30, 2020, and September 30, 2020 (the 'Affected Periods'), should no longer be relied upon and that the financial statements for such periods should be restated."
On May 17, 2021, Adamis filed a Notification of Late Filing on Form 12b-25 with the SEC stating that "it requires additional time to compile and evaluate certain information and complete its review of its financial statements and other disclosures in the [First Quarter] Form 10-Q, including regarding matters relating to its US Compounding Inc. subsidiary and management's evaluation of the Company's disclosure controls and procedures and internal control over financial reporting."
On May 24, 2021, Adamis filed Amendment No. 1 to its Notification of Late Filing on Form 12b-25 with the SEC stating that "[o]n May 11, 2021, each of the Company and its US Compounding Inc. subsidiary received a grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York issued in connection with a criminal investigation, requesting a broad range of documents and materials relating to, among other matters, certain veterinary products sold by the Company's USC subsidiary, certain practices, agreements and arrangements relating to products sold by USC, including veterinary products, and certain regulatory and other matters relating to the Company and USC." The Company further stated that "[t]his matter may divert management's attention, cause the Company to suffer reputational harm, require the Company to devote significant financial resources, subject the Company and its officers and directors to civil or criminal proceedings, and depending on the resolution of the matter, result in fines, penalties, equitable remedies, and affect the Company's previously reported financial results, financial results for the three months ended March 31, 2021, or future financial results." On this news, shares of Adamis common stock were trading down.
If you purchased Adamis securities between May 18, 2020 and May 24, 2021, and would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: https://www.bermantabacco.com/case/adamis-pharmaceuticals-corporation/.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
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