Document:

achv-ex412_639.htm

Exhibit 4.12

DESCRIPTION OF SECURITIES REGISTERED
UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Achieve Life Sciences, Inc. (the “Company,” “we,” or “our) had one class of capital stock registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common stock. 

The following description of our common stock summarizes the material terms and provisions of the common stock. Because it is only a summary, it may not contain all the information that is important to you. For the complete terms of our common stock, please refer to our certificate of incorporation, as amended and restated, and our amended and restated bylaws, which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.12 is a part, and to the provisions of applicable Delaware law.

Voting Rights.  For all matters submitted to a vote of stockholders, each holder of our common stock is entitled to one vote for each share registered in his or her name. Except as may be required by law and in connection with some significant actions, such as mergers, consolidations, or amendments to our certificate of incorporation that affect the rights of stockholders, holders of our common stock vote together as a single class. There is no cumulative voting in the election of our directors, which means that, subject to any rights to elect directors that are granted to the holders of any class or series of preferred stock, a plurality of the votes cast at a meeting of stockholders at which a quorum is present is sufficient to elect a director.

Liquidation.  In the event we are liquidated, dissolved or our affairs are wound up, after we pay or make adequate provision for all of our known debts and liabilities, each holder of our common stock will be entitled to share ratably in all assets that remain, subject to any rights that are granted to the holders of any class or series of preferred stock.

Dividends.  Subject to preferential dividend rights of any other class or series of stock, the holders of shares of our common stock are entitled to receive dividends, including dividends of our stock, as and when declared by our board of directors, subject to any limitations imposed by law and to the rights of the holders, if any, of our preferred stock. We have never paid cash dividends on our common stock. We do not anticipate paying periodic cash dividends on our common stock for the foreseeable future. Any future determination about the payment of dividends will be made at the discretion of our board of directors and will depend upon our earnings, if any, capital requirements, operating and financial conditions and on such other factors as the board of directors deems relevant. 

Other Rights and Restrictions.  Subject to the preferential rights of any other class or series of stock, all shares of our common stock have equal dividend, distribution, liquidation and other rights, and have no preference, appraisal or exchange rights, except for any appraisal rights provided by Delaware law. Furthermore, holders of our common stock have no conversion, sinking fund or redemption rights, or preemptive rights to subscribe for any of our securities. Our certificate of incorporation and our bylaws do not restrict the ability of a holder of our common stock to transfer his or her shares of our common stock

The rights, powers, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of holders of shares of any series of preferred stock which we may designate and issue in the future.

Preferred Stock

Pursuant to our restated certificate of incorporation, we are authorized to issue “blank check” preferred stock, which may be issued from time to time in one or more series upon authorization by our board of directors. Our board of directors, without further approval of the stockholders, is authorized to fix the designation, powers, preferences, relative, participating optional or other special rights, and any qualifications, limitations and restrictions applicable to each series of the preferred stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes could, among other things, adversely affect the voting power or rights of the holders of our common stock and, under certain circumstances, make it more difficult for a third party to gain control of us, discourage bids for our common stock at a premium or otherwise adversely affect the market price of the common stock.

Anti-Takeover Effects of Provisions of Our Charter Documents

 

Our certificate of incorporation and bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our company, including the following:

	
 
	
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only the chairman of the board, the chief executive officer, the president or a majority of our board of directors may call special meetings of stockholders, and the business transacted at special meetings of stockholders is limited to the business stated in the notice of such meetings;

	
 
	
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advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders, including certain requirements regarding the form and content of a stockholder’s notice;

	
 
	
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our board of directors may designate the terms of and issue new series of preferred stock;

	
 
	
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unless otherwise required by our bylaws, our certificate of incorporation or by law, our board of directors may amend our bylaws without stockholder approval; and

	
 
	
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only our board of directors may fill vacancies on our board of directors.

 

Anti-Takeover Effects of Provisions of Delaware Law

We are subject to the provisions of Section 203 of the Delaware General Corporation Law, or Section 203. Under Section 203, we would generally be prohibited from engaging in any business combination with any interested stockholder for a period of three years following the time that this stockholder became an interested stockholder unless:

	
 
	
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prior to this time, our board of directors approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

	
 
	
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upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers, and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

	
 
	
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at or subsequent to such time, the business combination is approved by our board of directors and authorized at a special or annual stockholders meeting, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

Under Section 203, a “business combination” includes:

	
 
	
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any merger or consolidation involving the corporation and the interested stockholder;

	
 
	
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any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

	
 
	
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any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder, subject to limited exceptions;

	
 
	
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any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or

	
 
	
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the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 203 defines an interested stockholder as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person.

Exchange Listing

Our common stock is listed on The Nasdaq Capital Market under the symbol “ACHV.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer and Trust Company, LLC.achv-ex1027_925.htm

 

Exhibit 10.27

 

AMENDMENT NO. 1 TO PURCHASE AGREEMENT

 

This Amendment No. 1 (the “Amendment”) is entered into this 12th day of March, 2020 (“Amendment Effective Date”), by and between ACHIEVE LIFE SCIENCES, INC., a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (the “Investor”), and amends that certain Purchase Agreement, dated as of September 14, 2017, between the Investor and the Company (the “Purchase Agreement”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.

RECITALS

Whereas, Section 12(e) of the Purchase Agreement provides that the Purchase Agreement may be amended by a written instrument signed by both parties thereto.

WHEREAS, the Company and the Investor desire to amend the terms of the Purchase Agreement as set forth herein;

NOW THEREFORE, the parties hereto, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby agree as follows:

 

1.Amendment and Restatement of Definition of “Base Prospectus” in the Purchase Agreement.  Effective as of the Amendment Effective Date, Section 1(k) of the Purchase Agreement is hereby amended and restated in its entirety as follows:

“(k)“Base Prospectus” means the Company’s final base prospectus, dated February 11, 2019, a preliminary form of which is included in the Registration Statement, including the documents incorporated by reference therein.”

 

2.Amendment and Restatement of Definition of “Maturity Date” in the Purchase Agreement.  Effective as of the Amendment Effective Date, Section 1(v) of the Purchase Agreement is hereby amended and restated in its entirety as follows:

“(v)Maturity Date” means the first day of the month immediately following the fifty-four (54) month anniversary of the Commencement Date.”

 

3.Amendment and Restatement of Definition of “Registration Statement” in the Purchase Agreement.  Effective as of the Amendment Effective Date, Section 1(dd) of the Purchase Agreement is hereby amended and restated in its entirety as follows:

“(dd)“Registration Statement” means, collectively, (i) the effective registration statement on Form S-3 (Commission File No. 333-207670) filed by the Company with the SEC pursuant to the Securities Act for the registration of shares of its Common Stock, 

 

 

including the Warrant Shares, and (ii) the effective registration statement on Form S-3 (Commission File No. 333-229019) filed by the Company with the SEC pursuant to the Securities Act for the registration of shares of its Common Stock, including the Purchase Shares and the Commitment Shares, as each such Registration Statement has been or may be amended and supplemented from time to time, including all documents filed as part thereof or incorporated by reference therein, and including all information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430B of the Securities Act, including any comparable successor registration statement filed by the Company with the SEC pursuant to the Securities Act for the registration of shares of its Common Stock, including the Purchase Shares, the Commitment Shares and the Warrant Shares.”

 

4.Amendment and Restatement of Second Sentence of Section 2(a) of the Purchase Agreement.  Effective as of the Amendment Effective Date, the second sentence of Section 2(a) of the Purchase Agreement is hereby amended and restated in its entirety as follows:

“Beginning one (1) Business Day following the Commencement Date, the Company shall have the right, but not the obligation, in its sole and absolute discretion, to direct the Investor, by its delivery to the Investor of a Regular Purchase Notice from time to time, to purchase up to One Hundred and Fifty Thousand (150,000) Purchase Shares (each such purchase a “Regular Purchase”), at the Purchase Price on the Purchase Date (which share amount shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction that occurs on or after the date of this Agreement); and provided, further, that the Investor’s committed obligation under any single Regular Purchase shall not exceed One Million Dollars ($1,000,000), unless the parties mutually agree to increase the dollar amount of any Regular Purchase on any Purchase Date at the applicable Purchase Price.”

5.Deletion of Second Sentence of Section 2(b) of the Purchase Agreement.  Effective as of the Amendment Effective Date, the second sentence of Section 2(b) of the Purchase Agreement is hereby deleted in its entirety.

6.Deletion of Section 2(d) of the Purchase Agreement.  Effective as of the Amendment Effective Date, Section 2(d) of the Purchase Agreement is hereby deleted in its entirety.

7.Amendment and Restatement of Last Paragraph of Section 10 of the Purchase Agreement.  Effective as of the Amendment Effective Date, the last paragraph of Section 10 of the Purchase Agreement is hereby amended and restated in its entirety as follows:

“In addition to any other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and is continuing, the Company shall not deliver to the Investor any Regular Purchase Notice or Accelerated Purchase Notice, and the Investor shall not purchase any shares of Common Stock under this Agreement.”

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6.Expense Reimbursement. In consideration for the Investor’s execution and delivery of this Amendment, the Company shall cause to be paid to the Investor, on or prior to the close of business on March 19, 2020, $120,000 (the “Expense Reimbursement”) by wire transfer of immediately available funds to an account designated by the Investor by written notice to the Company on or prior to the date of this Amendment, for reimbursement of the reasonable expenses incurred by the Investor in connection with its commitment hereunder (including, without limitation, the reasonable legal fees and disbursements incurred by the Investor).  For the avoidance of doubt, the full amount of the Expense Reimbursement shall be due and payable to the Investor as of the date of this Amendment, whether or not the any additional Purchase Shares are purchased by the Investor under the Agreement, as amended by this Amendment, from and after the Amendment Effective Date and irrespective of any termination of the Agreement, as amended by this Amendment.

7.No other amendment. Except as expressly set forth above, all other terms and conditions of the Purchase Agreement shall remain in full force and effect, without amendment thereto.

8.Representations and Warranties. Each party hereto represents and warrants as of the date hereof that such party has full power and authority to enter into the Amendment, and that when executed and delivered by such party, and assuming execution and delivery by the other parties, will constitute a legal, valid and binding obligation of such party, enforceable against it in accordance with its terms, except to the extent that such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or affecting enforcement of creditors’ rights and laws concerning equitable remedies.

9.Entire Agreement. The Purchase Agreement (including the Exhibits and Schedules thereto), as amended by this Amendment, constitutes (along with the documents referred to in the Purchase Agreement) a complete and exclusive statement of the terms of the agreement between the Company and the Investor with respect to its subject matter, and any reference to the Purchase Agreement (including the Exhibits and Schedules thereto) shall be a reference to the Purchase Agreement (including the Exhibits and Schedules thereto) as amended hereby.

10.Governing law. This Amendment shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.

11.Counterparts. This Amendment may be executed in counterparts, all of which taken together shall constitute one and the same original and binding instrument and shall become effective when all counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties hereto need not sign the same counterpart.

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officer as of the Amendment Effective Date.

 

THE COMPANY:

 

ACHIEVE LIFE SCIENCES, INC.

 

By:  /s/ John Bencich

Name:  John Bencich

Title:  

 

 

INVESTOR:

 

LINCOLN PARK CAPITAL FUND, LLC

BY: LINCOLN PARK CAPITAL, LLC

BY: ALEX NOAH INVESTORS, INC. 

 

By:  /s/ Jonathan Cope

Name: Jonathan Cope
Title: President

 

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