Filed Pursuant
to Rule 424(b)(5)
Registration No. 333-217106
Prospectus
Supplement
(To Prospectus Dated April 12, 2017)
Up to $30,000,000
Common Stock
We have entered into a Controlled Equity
Offering
SM
Sales Agreement, or sales agreement, with Cantor Fitzgerald & Co., or Cantor Fitzgerald, relating
to shares of our common stock offered by this prospectus supplement and the accompanying prospectus. In accordance with the terms
of the sales agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $30 million
from time to time through Cantor Fitzgerald acting as sales agent.
Our common stock is traded on the NYSE MKT
LLC, or NYSE MKT, under the symbol “MTNB.” On April 26, 2017, the last reported sales price of our common stock on
NSYE MKT was $2.88 per share.
Sales of our common stock, if
any, under this prospectus supplement and the accompanying prospectus may be made in sales deemed to be an “at the
market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, or the
Securities Act, including sales made directly on or through the NYSE MKT or any other existing trading market for our common
stock. Cantor Fitzgerald is not required to sell any specific number or dollar amount of securities, but will act as a sales
agent using commercially reasonable efforts consistent with its normal trading and sales practices, on mutually agreed terms
between Cantor Fitzgerald and us. There is no arrangement for funds to be received in any escrow, trust or
similar arrangement.
Cantor Fitzgerald will be entitled to compensation
at a fixed commission rate equal to 3.0% of the gross sales price per share sold. In connection with the sale of our common stock
on our behalf, Cantor Fitzgerald will be deemed to be an “underwriter” within the meaning of the Securities Act
and the compensation of Cantor Fitzgerald will be deemed to be underwriting commissions or discounts.
Investing in our common stock involves
risks. Before buying any shares, you should read the discussion of material risks of investing in our common stock in “Risk
Factors” beginning on page S-5 of this prospectus supplement, and in the risks discussed in the documents incorporated by
reference in this prospectus supplement and accompanying prospectus, as they may be amended, updated or modified periodically in
our reports filed with the Securities and Exchange Commission.
We are an “emerging growth
company” as defined by the Jumpstart Our Business Startups Act of 2012 and, as such, we have elected to comply with certain
reduced public company reporting requirements for this prospectus supplement and future filings.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement
and accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement
is April 28, 2017.
TABLE OF CONTENTS
Prospectus
ABOUT
THIS PROSPECTUS SUPPLEMENT
In this prospectus supplement,
"Matinas," "we," "us," "our" or "ours" refer to Matinas BioPharma Holdings, Inc.
and its consolidated subsidiaries.
This prospectus supplement
and the accompanying prospectus relate to the offering of shares of our common stock. Before buying any of the shares of common
stock offered hereby, we urge you to carefully read this prospectus supplement and the accompanying prospectus, together with the
information incorporated herein by reference as described under the headings "Where You Can Find More Information" and
"Incorporation of Certain Information by Reference." These documents contain important information that you should consider
when making your investment decision. This prospectus supplement contains information about the common stock offered hereby and
may add, update or change information in the accompanying prospectus.
You should rely only on
the information that we have provided or incorporated by reference in this prospectus supplement and the accompanying prospectus.
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.
We are not making offers
to sell or solicitations to buy our common stock in any jurisdiction in which an offer or solicitation is not authorized or in
which the person making that offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make an offer
or solicitation. You should assume that the information in this prospectus supplement and the accompanying prospectus or any related
free writing prospectus is accurate only as of the date on the front of the document and that any information that we have incorporated
by reference is accurate only as of the date of the document incorporated by reference, regardless of the time of delivery of this
prospectus supplement, the accompanying prospectus or any related free writing prospectus, or any sale of a security.
This document is in two
parts. The first part is this prospectus supplement, which adds to and updates information contained in the accompanying prospectus.
The second part, the prospectus, provides more general information, some of which may not apply to this offering. Generally, when
we refer to this prospectus, we are referring to both parts of this document combined. To the extent there is a conflict between
the information contained in this prospectus supplement and the information contained in the accompanying prospectus, you should
rely on the information in this prospectus supplement.
This prospectus supplement
and the accompanying prospectus contain summaries of certain provisions contained in some of the documents described herein, but
reference is made to the actual documents for complete information. All of the summaries are qualified in their entirety by the
actual documents. Copies of some of the documents referred to herein have been or will be filed as exhibits to the registration
statement of which this prospectus is a part or as exhibits to documents incorporated by reference herein, and you may obtain copies
of those documents as described below under the headings "Where You Can Find More Information" and "Incorporation
of Certain Information by Reference."
PROSPECTUS
SUPPLEMENT SUMMARY
The following summary
of our business highlights some of the information contained elsewhere in or incorporated by reference into this prospectus supplement.
Because this is only a summary, however, it does not contain all of the information that may be important to you. You should carefully
read this prospectus supplement and the accompanying prospectus, including the documents incorporated by reference, which are described
under "Incorporation of Certain Information by Reference" and "Where You Can Find More Information" in this
prospectus supplement. You should also carefully consider the matters discussed in the section titled "Risk Factors"
in this prospectus supplement and in the accompanying prospectus and in other periodic reports incorporated by reference herein.
Our Company
We are a clinical-stage
biopharmaceutical company focused on developing innovative anti-infectives for orphan indications. Our product and development
candidates are derived using our unique and proprietary lipid-crystal nano-particle, or cochleate, formulation platform delivery
technology. Our proprietary cochleate delivery technology platform, licensed from Rutgers University on an exclusive worldwide
basis, nano-encapsulates drugs and is designed to make these drugs orally bioavailable, well tolerated and safer and less toxic
while providing targeted and safe delivery of pharmaceuticals directly to the site of infection or inflammation. We believe our
cochleate technology provides us with an efficient and broadly applicable drug delivery platform, with particular utility in diseases
and conditions in which the immune system plays a significant modulation role and where the immune system facilitates the active
transport of our lipid crystal nano-particles throughout the body.
Currently, we are focused
on the anti-infective market and on drug candidates which we believe demonstrate the value and innovation associated with our unique
cochleate delivery platform technology while potentially providing significant health economic benefit to the health care system.
We believe initially focusing on the anti-infective market has distinct advantages for the development of products which meet significant
unmet medical need, including:
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a current regulatory environment which provides small development and clinical stage companies incentives such as significant periods of regulatory marketing exclusivity and opportunities to reduce development cost and timeline to market for anti-infective drug candidates;
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traditional high correlation between efficacy and safety data in preclinical animal models and the outcome of human clinical trials with anti-infective product candidates;
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attractive commercial opportunities for anti-infective product differentiated in safety profile, mode of action and oral bioavailability positioned against current therapies with significant side effects, or drug to drug interactions, limited efficacy and intravenous delivery resulting in lack of convenience, compliance and at a significant burden to the cost of healthcare; and
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an ability to commercialize anti-infective products with a focused and cost-efficient sales and marketing organization.
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MAT2203 and MAT2501
We leveraged our platform cochleate delivery
technology to develop two clinical-stage products that we believe have the potential to become best-in-class drugs. Our lead product
candidate MAT2203 is an orally-administered cochleate formulation of a broad spectrum anti-fungal drug called amphotericin B. We
are initially developing MAT2203 for the treatment of serious fungal infections as well as the prevention of invasive fungal infections
(IFIs) due to immunosuppressive therapy. We are currently conducting two Phase 2 clinical trials involving MAT2203 and expect to
report interim results from our open label NIH run Phase 2a clinical trial and topline results from our ongoing Phase 2 study of
MAT2203 in Vulvovaginal Candidiasis in the first half of 2017.
Our second clinical stage product candidate
is MAT2501, an orally administered, encochleated formulation of the broad spectrum aminoglycoside antibiotic amikacin which may
be used to treat different types of multidrug-resistant bacteria, including non-tuberculous mycobacterium infections (NTM), as
well as various multidrug-resistant gram negative and intracellular bacterial infections. We recently completed and announced topline
results from a Phase 1 single escalating dose clinical trial of MAT2501 in healthy volunteers in which no serious adverse events
were reported and where oral administration of MAT2501 at all tested doses yielded blood levels that were well below the safety
levels recommended for injected amikacin, supporting further development of MAT2501 for the treatment of NTM infections.
Implications of Being an Emerging Growth Company
We are an “emerging growth company,”
as defined in the Jumpstart Our Business Startups Act of 2012. We will remain an emerging growth company until December 31, 2019,
or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (ii)
the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur
if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our
most recently completed second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible
debt during the preceding three year period.
For as long as we remain an “emerging
growth company,” we intend to take advantage of certain exemptions from various reporting requirements that are applicable
to public companies that are not “emerging growth companies” including, but not limited to, not being required to comply
with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation and financial statements in our periodic reports and proxy statements, and exemptions from the requirements
of holding a nonbinding advisory vote to approve executive compensation and shareholder approval of any golden parachute payments
not previously approved. We will take advantage of these reporting exemptions until we are no longer an “emerging growth
company.”
Corporate Information
We were incorporated in Delaware under the
name Matinas BioPharma Holdings, Inc. in May 2013. We have two operating subsidiaries: Matinas BioPharma, Inc., a Delaware corporation,
and Matinas BioPharma Nanotechnologies, Inc., a Delaware corporation. Nereus BioPharma LLC, a Delaware limited liability company
(and Matinas BioPharma’s predecessor) was formed on August 12, 2011. On February 29, 2012, Nereus BioPharma LLC converted
from a limited liability company to a corporation and changed its name to Matinas BioPharma, Inc. In July 2013, Matinas BioPharma,
Inc. merged with and into a wholly-owned subsidiary of ours, thereby becoming a wholly owned subsidiary of ours. On January 29,
2015, we acquired Aquarius Biotechnologies Inc. which was subsequently renamed Matinas BioPharma Nanotechnologies, Inc.
Our principal executive offices are located
at 1545 Route 206 South, Suite 302, Bedminster, New Jersey 07921, and our telephone number is (908) 443-1860. Our
website address is www.matinasbiopharma.com. Our website and the information contained on, or that can be accessed through, our
website will not be deemed to be incorporated by reference in, and are not considered part of, this prospectus. You should not
rely on our website or any such information in making your decision whether to purchase our securities.
The Offering
Common stock offered by us
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Shares of our common stock having an aggregate offering price of up to $30 million.
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Common stock to be outstanding after this offering
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Up to 10,416,667 shares, assuming sales at a price of $2.88 per share, which was the closing price of our common stock on NYSE MKT, on April 26, 2017. The actual number of shares issued will vary depending on the sales price under this offering.
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Plan of Distribution
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An “at the market offering” that may be made
from time to time through our sales agent, Cantor Fitzgerald. See “Plan of Distribution” beginning on
page S-12 of this prospectus supplement.
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Use of Proceeds
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We currently intend to use the net proceeds from this offering for working capital and other general corporate purposes. See “Use of Proceeds” on page S-9 of this prospectus supplement.
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Risk Factors
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Investing in our common stock involves a high degree of risk. See “Risk Factors” beginning on page S-5 of this prospectus supplement and under similar headings in the other documents that are filed after the date hereof and incorporated by reference in this prospectus supplement for a discussion of factors to consider before deciding to purchase shares of our common stock.
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The total number of shares of common stock
to be outstanding immediately after this offering is based on 90,991,312 shares of common stock issued and outstanding as
of March 31, 2017, which does not include the following, all as of March 31, 2017:
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10,326,027 shares issuable upon the exercise
of outstanding stock options with a weighted-average exercise price of $1.33 per share;
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15,900,000 shares issuable upon conversion
of Series A Preferred Stock;
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6,368,855 shares issuable upon the exercise
of outstanding warrants with a weighted-average exercise price of $0.70 per share;
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2,509,805 shares available for future
issuance under our equity compensation plans; and
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3,000,000 shares issuable upon achievement
of certain milestones pursuant to the terms of our merger agreement with Aquarius Biotechnologies, Inc.
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Unless otherwise stated, all information
in this prospectus supplement:
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assumes no exercise of outstanding options
to purchase common stock and no issuance of shares available for future issuance under our equity compensation plans; and
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reflects all currency in U.S. dollars.
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RISK
FACTORS
An investment in our securities
involves a high degree of risk. You should carefully consider the risks described under "Risk Factors" in the accompanying
prospectus and our Annual Report on Form 10-K for the year ended December 31, 2016, respectively, as updated by any other
document that we subsequently file with the Securities and Exchange Commission and that is incorporated by reference into this
prospectus supplement and the accompanying prospectus, as well as the risks described below and all of the other information contained
in this prospectus supplement and the accompanying prospectus, and incorporated by reference into this prospectus supplement and
the accompanying prospectus, including our financial statements and related notes, before investing in our securities. These risks
and uncertainties are not the only ones facing us and there may be additional matters that we are unaware of or that we currently
consider immaterial. All of these could adversely affect our business, business prospects, cash flow, results of operations and
financial condition. In such case, the trading price of our common stock could decline, and you could lose all or part of your
investment in our common stock.
Risks Related to
this Offering
Management will have
broad discretion as to the use of the proceeds from this offering, and we may not use the proceeds effectively.
Because we have not designated
the amount of net proceeds received by us 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 value.
You may experience
immediate and substantial dilution in the book value per share of the common stock you purchase.
Because the price per
share of our common stock being offered may be higher than the book value per share of our common stock, you may suffer substantial
dilution in the net tangible book value of the common stock you purchase in this offering. See the section entitled “Dilution"
below for a more detailed discussion of the dilution you will incur if you purchase common stock in this offering. In addition,
we have a significant number of options and restricted stock outstanding. If the holders of these securities exercise them or become
vested in them, as applicable, you may incur further dilution.
You may experience future dilution as a
result of future equity offerings.
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 at prices that may not be the same as the price per share in this offering. We may sell shares or other securities in any
other offering at a price per share that is less 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 securities convertible or exchangeable into common stock, in future transactions may
be higher or lower than the price per share paid by investors in this offering. Furthermore, sales of a substantial number of shares
of our common stock in the public markets, or the perception that such sales could occur, could depress the market price of our
common stock.
You may be subject to substantial dilution
by exercises of outstanding options and warrants, conversion of preferred shares and by the future issuance of common stock to
the former stockholders of Aquarius pursuant to the terms of the merger agreement.
As of December 31, 2016,
we had outstanding options to purchase an aggregate of 8,290,000 shares of our common stock at a weighted average exercise price
of $0.85 per share and warrants to purchase an aggregate of 40,255,234 shares of our common stock at a weighted average exercise
price of $1.16 per share. Subsequently, pursuant to the warrant tender offer completed in January 2017, an aggregate of 30,966,350
warrants were tendered and exercised on January 13, 2017. In addition, as of December 31, 2016, we had 1.6 million shares of preferred
stock outstanding. Each share of preferred stock may be converted into 10 shares of common stock upon the request of the holder.
The conversion of preferred shares and the exercise of such outstanding options and the remaining warrants, which as of March 15,
2017 were approximately 6,452,605 warrants, will result in dilution of the value of our shares. In addition, pursuant to the terms
of the merger agreement with Aquarius Biotechnologies, Inc., we will be required to issue up to an additional 3,000,000 shares
of our common stock upon the achievement of certain milestones. The milestone consideration consists of (i) 1,500,000 shares issuable
upon the dosing of the first patient in a phase III trial sponsored by us for a product utilizing the cochleate delivery technology
and (ii) 1,500,000 shares issuable upon FDA approval of the first NDA submitted by us for a product utilizing the cochleate delivery
technology.
Our share price has
been and could remain volatile.
The market price of our
common stock has historically experienced and may continue to experience significant volatility. From January 2015 through March
31, 2017, the market price of our common stock has fluctuated from a low of $0.34 per share in the first quarter of 2015 to a high
of $3.99 per share in the first quarter of 2017. Our progress in developing and commercializing our products, the impact of government
regulations on our products and industry, the potential sale of a large volume of our common stock by stockholders, our quarterly
operating results, changes in general conditions in the economy or the financial markets and other developments affecting us or
our competitors could cause the market price of our common stock to fluctuate substantially with significant market losses. If
our stockholders sell a substantial number of shares of common stock, especially if those sales are made during a short period
of time, those sales could adversely affect the market price of our common stock and could impair our ability to raise capital.
In addition, in recent years, the stock market has experienced significant price and volume fluctuations. This volatility has affected
the market prices of securities issued by many companies for reasons unrelated to their operating performance and may adversely
affect the price of our common stock. In addition, we could be subject to a securities class action litigation as a result of volatility
in the price of our stock, which could result in substantial costs and diversion of management’s attention and resources
and could harm our stock price, business, prospects, results of operations and financial condition.
Pursuant to the terms of our outstanding Series A Preferred
Stock, we may be obligated to pay significant royalties.
Pursuant to the terms of the Certificate
of Designations of Preferences, Rights and Limitations (the “Certificate of Designations”) for our outstanding Series
A Preferred Stock, we may be required to pay royalties of up to $35 million per year. If and when we obtain FDA or EMA approval
of MAT2203 and/or MAT2501, which we do not expect to occur before 2020, if ever, and/or if we generate sales of such products,
or we receive any proceeds from the licensing or other disposition of MAT2203 or MAT2501, we are required to pay to the holders
of our Series A Preferred Stock, subject to certain vesting requirements, in aggregate, a royalty equal to (i) 4.5% of Net Sales
(as defined in the Certificate of Designations), subject in all cases to a cap of $25 million per calendar year, and (ii) 7.5%
of Licensing Proceeds (as defined in the Certificate of Designations), subject in all cases to a cap of $10 million per calendar
year. The Royalty Payment Rights will expire when the patents covering the applicable product expire, which is currently expected
to be in 2033.
We are obligated to pay dividends on outstanding shares of
our Series A Preferred Stock.
Holders of Series A Preferred Stock are
entitled to receive cumulative dividends at the rate per share of 8% per annum, payable in shares of our common stock, which annual
dividend will accumulate until such time as the shares of Series A Preferred Stock are converted, at which time the accumulated
dividend will be satisfied by delivery of shares of common stock at a price per share of common stock equal to the conversion price
of the Series A Preferred Stock then in effect (currently $0.50 per share). The Series A Preferred Stock will automatically convert
at the conversion price in effect on July 29, 2019, unless such shares are converted earlier in accordance with the terms of the
Certificate of Designations for the Series A Preferred Stock. The payment of such dividends will result in additional dilution
to our holders of our common stock.
Our outstanding shares of Series A Preferred Stock has certain
preference rights upon any liquidation, dissolution or winding up.
Upon any dissolution, liquidation or winding
up, whether voluntary or involuntary, holders of Series A Preferred Stock will be entitled to (i) first receive distributions out
of our assets in an amount per share equal to $5.00, or the stated value, plus all accrued and unpaid dividends, whether capital
or surplus before any distributions shall be made on any shares of common stock and (ii) second, receive distributions out of our
assets on an as-converted basis alongside the common stock.
Because we do not intend to declare cash dividends on our
shares of common stock in the foreseeable future, stockholders must rely on appreciation of the value of our common stock for
any return on their investment.
We have never declared or paid cash dividends
on our common stock. We currently anticipate that we will retain future earnings for the development, operation and expansion of
our business and do not anticipate declaring or paying any cash dividends in the foreseeable future. In addition, the terms of
any existing or future debt agreements may preclude us from paying dividends. As a result, we expect that only appreciation of
the price of our common stock, if any, will provide a return to investors in this offering for the foreseeable future.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement,
the accompanying prospectus and the documents incorporated by reference herein contain forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our
management's judgment regarding future events. In many cases, you can identify forward- looking statements by terminology such
as "may," "will," "should," "plan," "expect," "anticipate," "estimate,"
"predict," "intend," "potential" or "continue" or the negative of these terms or other
words of similar import, although some forward-looking statements are expressed differently. All statements other than statements
of historical fact included in this prospectus supplement, the accompanying prospectus and the documents incorporated by reference
herein regarding our financial position, business strategy and plans or objectives for future operations are forward-looking statements.
Without limiting the broader description of forward-looking statements above, we specifically note that statements regarding potential
drug candidates, their potential therapeutic effect, the possibility of obtaining regulatory approval, our expected timing for
completing clinical trials and clinical trial milestones for our drug candidates, our ability or the ability of our collaborators
to manufacture and sell any products, market acceptance or our ability to earn a profit from sales or licenses of any drug candidate
or to discover new drugs in the future are all forward-looking in nature. We cannot guarantee the accuracy of forward-looking statements,
and you should be aware that results and events could differ materially and adversely from those described in the forward-looking
statements due to a number of factors, including, but not limited to:
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our ability to raise additional capital to fund our
operations and to develop our product candidates;
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our anticipated timing
for preclinical development, regulatory submissions, commencement and completion of clinical trials and product approvals;
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our history of operating
losses in each year since inception and the expectation that we will continue to incur operating losses for the foreseeable future;
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our dependence on product
candidates, which are still in an early development stage;
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our reliance on proprietary
cochleate drug delivery technology, which is licensed to us by Rutgers University;
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our ability to manufacture
GMP batches of our product candidates which are required for pre-clinical and clinical trials and, subsequently, if regulatory
approval is obtained for any of our products, our ability to manufacture commercial quantities;
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our ability to complete
required clinical trials for our lead product candidate and other product candidates and obtain approval from the FDA or other
regulatory agents in different jurisdictions;
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our expectations of
the attributes of our product and development candidates, including pharmaceutical properties, efficacy, safety and dosing regimens;
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our dependence on third-parties,
including third-parties to manufacture and third-party CROs (including, without limitation, the National Institutes of Health
(NIH) to conduct our clinical trials;
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our ability to maintain
or protect the validity of our patents and other intellectual property;
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our ability to retain
and recruit key personnel;
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our ability to internally
develop new inventions and intellectual property;
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interpretations of current
laws and the passages of future laws;
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our lack of a sales
and marketing organization and our ability to commercialize products, if we obtain regulatory approval, whether alone or through
potential future collaborators;
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our ability to successfully
commercialize, and our expectations regarding future therapeutic and commercial potential with respect to, our product candidates;
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the accuracy of our
estimates regarding expenses, ongoing losses, future revenue, capital requirements and our needs for or ability to obtain additional
financing;
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developments and projections
relating to our competitors or our industry; and
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our ability to adequately
support growth.
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You should also consider
carefully the statements set forth in the section entitled "Risk Factors" in this prospectus supplement and in our Annual
Report on Form 10-K for the year ended December 31, 2016, respectively, as updated by any other document that we subsequently filed
with the Securities and Exchange Commission and that is incorporated by reference into this prospectus supplement, which address
various factors that could cause results or events to differ from those described in the forward-looking statements. All subsequent
written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their
entirety by the applicable cautionary statements. We have no plans to update these forward-looking statements.
USE
OF PROCEEDS
We may issue and sell
shares of our common stock having aggregate sales proceeds of up to $30.0 million from time to time. Because there is no minimum
offering amount required as a condition to close this offering, the actual total public offering amount, commissions and proceeds
to us, if any, are not determinable at this time. There can be no assurance that we will be able to sell any shares under or fully
utilize the sales agreement with Cantor Fitzgerald as a source of financing. We currently expect to use the net proceeds from this
offering for working capital and other general corporate purposes. Until we use the net proceeds of this offering, we intend to
invest the funds in short-term, investment grade, interest-bearing securities.
The amount and timing
of actual expenditures for the purposes set forth above may vary based on several factors, and our management will retain broad
discretion as to the ultimate allocation of the proceeds.
MARKET
PRICE FOR OUR COMMON STOCK
Prior
to July 21, 2014, no public trades occurred in our common stock. On July 21, 2014, our common stock commenced quotation on the
OTCQB under the symbol “MTNB.” On March 2, 2017, our common stock began trading on NYSE MKT under the symbol “MTNB.”
For the periods prior up to March 2, 2017, the following table sets forth, for the periods indicated, the reported high and low
bid quotations per share for our common stock based on information provided by the OTC Market Group, Inc. Such OTCQB over-the-counter
market quotations reflect inter-dealer prices, without markup, markdown or commissions and, particularly because our common stock
is traded infrequently, may not necessarily represent actual transactions or a liquid trading market. Beginning March 2, 2017,
the table sets forth for the periods indicated the high and low sale prices per share for our common stock, as reported by NYSE
MKT.
Fiscal Period
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High
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Low
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Year Ending December 31, 2017
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First Quarter
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$
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3.99
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$
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1.39
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Second Quarter (through April 26, 2017)
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3.20
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2.62
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Year Ended December 31, 2016
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First Quarter
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$
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0.90
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$
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0.45
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Second Quarter
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0.79
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0.47
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Third Quarter
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1.73
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0.61
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Fourth Quarter
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1.95
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1.25
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Year Ended December 31, 2015
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First Quarter
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$
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0.65
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$
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0.34
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Second Quarter
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1.42
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0.60
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|
Third Quarter
|
|
|
1.05
|
|
|
|
0.73
|
|
Fourth Quarter
|
|
|
0.91
|
|
|
|
0.60
|
|
On
April 26, 2017 the closing price of our common stock, as reported by NYSE MKT, was $2.88 per share.
DILUTION
If you invest in our common
stock in this offering, your ownership interest will be diluted to the extent of the difference between the price per share you
pay in this offering and our pro forma net tangible book value per share after this offering. We calculate net tangible book value
per share by dividing our net tangible book value, which is tangible assets less total liabilities, by the number of outstanding
shares of our common stock.
Our net tangible book
value as of December 31, 2016 was approximately $2.8 million, or $0.05 per share. Net tangible book value per share after this
offering gives effect to the sale of $30.0 million of common stock in this offering at an assumed offering price of $2.88 per share,
which was the closing price of our common stock as reported on NYSE MKT on April 26, 2017, after deducting offering commissions
and estimated expenses payable by us. Our net tangible book value as of December 31, 2016, after giving effect to this offering
as described above, would have been approximately $31.8 million, or $0.46 per share of common stock. This represents an immediate
increase in pro forma net tangible book value of $0.41 per share to existing stockholders and an immediate dilution of $2.42 per
share to new investors purchasing our common stock in this offering. The following table illustrates the per share dilution:
|
|
|
|
|
|
|
Assumed public offering price per share
|
|
|
|
|
|
$
|
2.88
|
|
Net tangible book value per share as of December 31, 2016
|
|
$
|
0.05
|
|
|
|
|
|
Increase in net tangible book value per share attributable to this offering
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma net tangible book value per share as of December 31, 2016, after giving effect to this offering
|
|
|
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
Dilution per share to new investors in this offering
|
|
|
|
|
|
$
|
2.42
|
|
The above table is based on 58,159,495
shares of our common stock issued and outstanding as of December 31, 2016, which does not include the following, as of December
31, 2016:
|
·
|
8,290,000 shares issuable upon the exercise
of outstanding stock options with a weighted-average exercise price of $0.85 per share;
|
|
·
|
16,000,000 shares issuable upon conversion
of outstanding shares of Series A Preferred Stock;
|
|
·
|
40,255,234 shares issuable upon the exercise
of outstanding warrants with a weighted-average exercise price of $1.16 per share;
|
|
·
|
2,503,519 shares available for future
issuance under our equity compensation plans; and
|
|
·
|
3,000,000 shares issuable upon achievement
of certain milestones pursuant to the terms of our merger agreement with Aquarius Biotechnologies, Inc.
|
To
the extent that options or warrants are exercised, new options are issued under our 2013 Equity Incentive Plan, or we issue additional
shares of common stock in the future, there may be further dilution to investors participating in this offering. In addition, we
may choose to raise additional capital because of market conditions or strategic considerations, even if we believe that we have
sufficient funds for our current or future operating plans. If we raise additional capital through the sale of equity or convertible
debt securities, the issuance of these securities could result in further dilution to our stockholders.
PLAN
OF DISTRIBUTION
We have entered into a Controlled
Equity Offering
SM
sales agreement with Cantor Fitzgerald & Co., or Cantor Fitzgerald, pursuant to which we may
issue and sell up to $30 million of shares of our common stock, $0.0001 par value per share, from time to time through Cantor
Fitzgerald acting as agent. This summary of the material provisions of the sales agreement does not purport to be a complete
statement of its terms and conditions. A copy of the sales agreement was filed with the SEC and is incorporated by reference
into the registration statement of which this prospectus supplement is a part. See “Where You Can Find More
Information” below.
Upon delivery of a placement notice and
subject to the terms and conditions of the sales agreement, Cantor Fitzgerald may sell our common stock by any method permitted
by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act,
including sales made directly on the NYSE MKT or any other existing trading market for our common stock. We or Cantor Fitzgerald
may suspend or terminate the offering of our common stock upon notice and subject to other conditions.
We will pay Cantor Fitzgerald in cash,
upon each sale of our common stock pursuant to the sales agreement, a commission in an amount equal to 3.0% of the aggregate
gross proceeds from each sale of our common stock. Because there is no minimum offering amount required as a condition to
this offering, the actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this
time. We have agreed to reimburse a portion of Cantor Fitzgerald’s expenses, including legal fees, in connection with
this offering up to a maximum of $50,000. We estimate that the total expenses for the offering, excluding compensation and
expense reimbursement payable to Cantor Fitzgerald under the terms of the sales agreement, will be approximately
$100,000.
Settlement for sales of common stock will
occur on the third business day following the date on which any sales are made, or on some other date that is agreed upon by us
and Cantor Fitzgerald in connection with a particular transaction, in return for payment of the net proceeds to us. There is no
arrangement for funds to be received in an escrow, trust or similar arrangement. 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 Cantor Fitzgerald
may agree upon.
Cantor Fitzgerald will use its commercially
reasonable efforts, consistent with its 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 the common stock on our
behalf, Cantor Fitzgerald will be deemed to be an “underwriter” within the meaning of the Securities Act and the compensation
of Cantor Fitzgerald will be deemed to be underwriting commissions or discounts. We have agreed to provide indemnification and
contribution to Cantor Fitzgerald against certain civil liabilities, including liabilities under the Securities Act.
The offering of our common stock pursuant
to the sales agreement will terminate as permitted therein. We or Cantor Fitzgerald may terminate the sales agreement at any time
upon ten (10) days’ prior notice.
Cantor Fitzgerald and its affiliates may
in the future provide various investment banking, commercial 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, Cantor Fitzgerald will not
engage in any market making activities involving our common stock while the offering is ongoing under this prospectus.
This prospectus in electronic format may
be made available on a website maintained by Cantor Fitzgerald and Cantor Fitzgerald may distribute this prospectus electronically.
LEGAL
MATTERS
Lowenstein Sandler LLP,
New York, New York, will provide us with an opinion as to the validity of the shares of common stock offered by this prospectus
supplement and the accompanying prospectus. Partners of the firm beneficially own an aggregate of 155,000 shares of common stock,
5,000 shares of Series A Preferred Stock, and warrants to purchase 20,000 shares of our common stock with an exercise price of
$0.75 per share. Cantor Fitzgerald & Co. is being represented in connection with this offering by Cooley LLP, New York, New
York.
EXPERTS
The consolidated balance
sheets of Matinas BioPharma Holdings, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements
of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2016,
have been audited by EisnerAmper LLP, independent registered public accounting firm, as stated in their report which is incorporated
herein by reference. Such financial statements have been incorporated herein by reference in reliance on the report of such firm
given upon their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We file annual, quarterly
and current reports, proxy statements and other information with the SEC. We have also filed a registration statement on Form S-3,
including exhibits, under the Securities Act with respect to the securities offered by this prospectus supplement and the accompanying
prospectus. This prospectus supplement and the accompanying prospectus are a part of the registration statement but do not contain
all of the information included in the registration statement or the exhibits. You may read and copy the registration statement
and any other document that we file at the SEC's public reference room at 100 F Street, N.E., Room 1580, Washington D.C.
20549. You can call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room. You can also
find our public filings with the SEC on the Internet at a web site maintained by the SEC located at
http://www.sec.gov
.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to "incorporate
by reference" into this prospectus supplement and the accompanying prospectus certain information. This means that we can
disclose important information to you by referring you to those documents that contain the information. The information we incorporate
by reference is considered a part of this prospectus supplement and the accompanying prospectus, and later information we file
with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed below and
any future filings we make with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, on or after the date
of this prospectus supplement (other than information "furnished" under Items 2.02 or 7.01 (or corresponding information
furnished under Item 9.01 or included as an exhibit)) of any Current Report on Form 8-K or otherwise "furnished"
to the SEC, unless otherwise stated) until this offering is completed:
•
our
Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 31, 2017;
• our Current
Reports on Form 8-K filed with the SEC on January 19, 2017, March 30, 2017, April 3, 2017, April 18, 2017 and April 28, 2017;
and
• the description
of our common stock contained in our Registration Statement on Form 8-A, filed on March 1, 2017, including any amendments
thereto or reports filed for the purposes of updating this description.
You may request a copy
of these filings, at no cost, by writing to or telephoning us at the following address:
Investor Relations Department
Matinas BioPharma Holdings, Inc.
1545 Route 206 South
Suite 302
Bedminster, NJ 07921
Telephone number: 908-443-1860
Any statement contained
in this prospectus supplement or in a document incorporated or deemed to be incorporated by reference into this prospectus supplement
will be deemed to be modified or superseded for purposes of this prospectus supplement to the extent that a statement contained
in this prospectus supplement or any other subsequently filed document that is deemed to be incorporated by reference into this
prospectus supplement modifies or supersedes the statement. Any statement so modified or superseded will not be deemed, except
as so modified or superseded, to constitute a part of this prospectus supplement.
You should rely only on
information contained in, or incorporated by reference into, this prospectus supplement and the accompanying prospectus. We have
not authorized anyone to provide you with information different from that contained in this prospectus supplement and the accompanying
prospectus or incorporated by reference in this prospectus supplement and the accompanying prospectus. We are not making offers
to sell the securities in any jurisdiction in which such an offer or solicitation is not authorized or in which the person making
such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
Prospectus
$150,000,000
Common Stock
Preferred Stock
Warrants
Debt Securities
Subscription Rights
Units
We may offer, issue and
sell from time to time together or separately, in one or more offerings, any combination of (i) our common stock, (ii) our preferred
stock, which we may issue in one or more series, (iii) warrants, (iv) senior or subordinated debt securities, (v) subscription
rights and (vi) units, consisting of any combination of the securities listed above. We will describe in a prospectus supplement
the securities we are offering and selling, as well as the specific terms of the securities.
The aggregate public offering
price of the securities that we are offering will not exceed $150,000,000. We will offer the securities in an amount and on terms
that market conditions will determine at the time of the offering. Our common stock is listed on the NSYE MKT under the symbol
“MTNB.” The last reported sale price for our common stock on March 30, 2017 was $2.75 per share. You are urged to obtain
current market quotations of our common stock. We have no preferred stock, warrants, debt securities, subscription rights or units
listed on any market. Each prospectus supplement will indicate if the securities offered thereby will be listed on any securities
exchange.
Investing in our securities
involves risk. You should carefully consider the risks that we have described under the section captioned “Risk Factors”
in this prospectus on page 3 before buying our Securities.
Should we offer any of
the securities described in this prospectus, we will provide you with the specific terms of the particular securities being offered
in supplements to this prospectus. You should read this prospectus and any supplement, together with additional information described
under the headings “Additional Information” and “Incorporation of Certain Information by Reference,” carefully
before you invest. This prospectus may not be used to sell securities unless accompanied by a prospectus supplement.
We may sell these securities
directly to our stockholders or to purchasers or through agents on our behalf or through underwriters or dealers as designated
from time to time. If any agents or underwriters are involved in the sale of any of these securities, the applicable prospectus
supplement will provide the names of the agents or underwriters and any applicable fees, commissions or discounts.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful and complete. Any representation to the contrary is a criminal offense.
The date of this
prospectus is April 12 ,
2017
Unless the context indicates
otherwise, “Matinas”, “the Company”, “we”, “us”, and “our” as used
herein refers to Matinas BioPharma Holdings, Inc. and its wholly owned subsidiaries, Matinas BioPharma Inc. and Matinas BioPharma
Nanotechnologies, Inc.
You may only rely on the
information contained in this prospectus or that we have referred you to. We have not authorized anyone to provide you with different
information. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities other than
the securities offered by this prospectus. This prospectus and any future prospectus supplement do not constitute an offer to sell
or a solicitation of an offer to buy any securities in any circumstances in which such offer or solicitation is unlawful. Neither
the delivery of this prospectus or any prospectus supplement nor any sale made hereunder shall, under any circumstances, create
any implication that there has been no change in our affairs since the date of this prospectus or such prospectus supplement or
that the information contained by reference to this prospectus or any prospectus supplement is correct as of any time after its
date.
ABOUT THIS PROSPECTUS
This prospectus is part of a registration
statement that we filed with the Securities and Exchange Commission (“SEC”) using a “shelf” registration
process. Under this shelf registration process, we may from time to time offer and sell, in one or more offerings, any or all of
the securities described in this prospectus, separately or together, up to an aggregate initial offering price of $150,000,000.
This prospectus provides you with a general description of our securities being offered. When we issue the securities being offered
by this prospectus, we will provide a prospectus supplement that will contain specific information about the terms of that offering.
The prospectus supplement may also add, update or change information contained in this prospectus. You should read both this prospectus
and any prospectus supplement together with additional information described under the heading “Additional Information”
and “Incorporation of Certain Information by Reference.”
PROSPECTUS SUMMARY
The following summary highlights some information
from this prospectus. It is not complete and does not contain all of the information that you should consider before making an
investment decision. You should read this entire prospectus, including the “Risk Factors” section on page
3
,
the financial statements and related notes and the other more detailed information appearing elsewhere or incorporated by reference
into this prospectus.
We currently do not own or license any U.S.
federal trademark registrations or applications. Some trademarks referred to in this prospectus are referred to without the ®
and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert,
to the fullest extent under applicable law, their rights thereto.
About Us
We are a clinical-stage
biopharmaceutical company focused on developing innovative anti-infectives for orphan indications. Our product and development
candidates are derived using our unique and proprietary lipid-crystal nano-particle, or cochleate, formulation platform delivery
technology. Our proprietary cochleate delivery technology platform, licensed from Rutgers University on an exclusive worldwide
basis, nano-encapsulates drugs and is designed to make these drugs orally bioavailable, well tolerated and safer and less toxic
while providing targeted and safe delivery of pharmaceuticals directly to the site of infection or inflammation. We believe our
cochleate technology provides us with an efficient and broadly applicable drug delivery platform, with particular utility in diseases
and conditions in which the immune system plays a significant modulation role and where the immune system facilitates the active
transport of our lipid crystal nano-particles throughout the body.
Currently, we are focused
on the anti-infective market and on drug candidates which we believe demonstrate the value and innovation associated with our unique
cochleate delivery platform technology while potentially providing significant health economic benefit to the health care system.
We believe initially focusing on the anti-infective market has distinct advantages for the development of products which meet significant
unmet medical need, including:
|
·
|
a current regulatory environment which provides small development
and clinical stage companies incentives such as significant periods of regulatory marketing exclusivity and opportunities to reduce
development cost and timeline to market for anti-infective drug candidates;
|
|
·
|
traditional high correlation between efficacy and safety
data in preclinical animal models and the outcome of human clinical trials with anti-infective product candidates;
|
|
·
|
attractive commercial opportunities for anti-infective
product differentiated in safety profile, mode of action and oral bioavailability positioned against current therapies with
significant side effects, or drug to drug interactions, limited efficacy and intravenous delivery resulting in lack of convenience,
compliance and at a significant burden to the cost of healthcare; and
|
|
·
|
an ability to commercialize anti-infective products with
a focused and cost-efficient sales and marketing organization.
|
MAT2203 and MAT2501
We leveraged our platform
cochleate delivery technology to develop two clinical-stage products that we believe have the potential to become best-in-class
drugs. Our lead product candidate MAT2203 is an orally-administered cochleate formulation of a broad spectrum anti-fungal drug
called amphotericin B. We are initially developing MAT2203 for the treatment of serious fungal infections as well as the prevention
of invasive fungal infections (IFIs) due to immunosuppressive therapy. We are currently conducting two Phase 2 clinical trials involving MAT2203 and expect to report interim results from our open label NIH run Phase 2a clinical trial and topline results from our ongoing Phase 2 study of MAT2203 in Vulvovaginal Candidiasis in the first half of 2017.
Our second clinical
stage product candidate is MAT2501, an orally administered, encochleated formulation of the broad spectrum aminoglycoside antibiotic
amikacin which may be used to treat different types of multidrug-resistant bacteria, including non-tuberculous mycobacterium infections
(NTM), as well as various multidrug-resistant gram negative and intracellular bacterial infections. We recently completed and announced
topline results from a Phase 1 single escalating dose clinical trial of MAT2501 in healthy volunteers in which no serious adverse
events were reported and where oral administration of MAT2501 at all tested doses yielded blood levels that were well below the
safety levels recommended for injected amikacin, supporting further development of MAT2501 for the treatment of NTM infections.
Implications of Being an Emerging Growth Company
We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012. We will remain
an emerging growth company until December 31, 2019, or until the earliest of (i) the last day of the first fiscal year in which
our annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in
Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds
$700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we have
issued more than $1 billion in non-convertible debt during the preceding three year period.
For as long as we remain an “emerging
growth company,” we intend to take advantage of certain exemptions from various reporting requirements that are applicable
to public companies that are not “emerging growth companies” including, but not limited to, not being required to
comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations
regarding executive compensation and financial statements in our periodic reports and proxy statements, and exemptions from the
requirements of holding a nonbinding advisory vote to approve executive compensation and shareholder approval of any golden parachute
payments not previously approved. We will take advantage of these reporting exemptions until we are no longer an “emerging
growth company.”
Corporate Information
We were incorporated in Delaware under the
name Matinas BioPharma Holdings, Inc. in May 2013. We have two operating subsidiaries: Matinas BioPharma, Inc., a Delaware corporation,
and Matinas BioPharma Nanotechnologies, Inc., a Delaware corporation. Nereus BioPharma LLC, a Delaware limited liability company (and Matinas
BioPharma’s predecessor) was formed on August 12, 2011. On February 29, 2012, Nereus BioPharma LLC converted from a limited
liability company to a corporation and changed its name to Matinas BioPharma, Inc. In July 2013, Matinas BioPharma, Inc. entered
into entered into a merger agreement (the “2013 Merger Agreement”) with Matinas Merger Sub, Inc., a Delaware corporation
and our wholly owned subsidiary, or Merger Sub. Pursuant to the terms of the 2013 Merger Agreement, as a condition of and contemporaneously
with the initial closing of the 2013 Private Placement, Merger Sub merged (the “2013 Merger”) with and into Matinas
BioPharma and Matinas BioPharma became a wholly owned subsidiary of ours. After consummation of the Merger transaction, the management
of Matinas BioPharma became the management of Holdings and the board representatives consisted of four former Board members of
Matinas BioPharma and Mr. Adam Stern as the Aegis Capital Corp. nominee. Because Holdings was formed solely to effect the
2013 Merger and the 2013 Private Placement, with no operations, and assets consisting solely of cash and cash equivalents, we accounted
for the 2013 Merger as a reverse acquisition. The legal acquirer Matinas BioPharma becomes the successor entity, and its historical
results became the historical results for Holdings (the legal acquirer and the registrant). On January 29, 2015, we acquired Aquarius
Biotechnologies Inc. which was subsequently renamed Matinas BioPharma Nanotechnologies, Inc.
Our principal executive
offices are located at 1545 Route 206 South, Suite 302, Bedminster, New Jersey 07921, and our telephone number is (908) 443-1860. Our
website address is www.matinasbiopharma.com. Our website and the information contained on, or that can be accessed through, our
website will not be deemed to be incorporated by reference in, and are not considered part of, this prospectus. You should not
rely on our website or any such information in making your decision whether to purchase our securities.
RISK FACTORS
An investment in our securities involves
a high degree of risk. Before making an investment decision, you should carefully consider the risks described under “Risk
Factors” in the applicable prospectus supplement and in our most recent Annual Report on Form 10-K, and in our updates to
those Risk Factors in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K following the most recent Form 10-K, and
in all other information appearing in this prospectus or incorporated by reference into this prospectus and any applicable prospectus
supplement. The material risks and uncertainties that management believes affect us will be described in those documents. In addition
to those risk factors, there may be additional risks and uncertainties of which management is not aware or focused on or that management
deems immaterial. Our business, financial condition or results of operations could be materially adversely affected by any of these
risks. The trading price of our securities could decline due to any of these risks, and you may lose all or part of your investment.
This prospectus is qualified in its entirety by these risk factors.
FORWARD-LOOKING STATEMENTS
This prospectus,
including the documents that we incorporate by reference, contains forward-looking statements as that term is defined in
the federal securities laws. The events described in forward-looking statements contained in this prospectus, including the
documents that we incorporate by reference, may not occur. Generally, these statements relate to our business plans or
strategies, projected or anticipated benefits or other consequences of our plans or strategies, financing plans, projected or
anticipated benefits from acquisitions that we may make, or projections involving anticipated revenues, earnings or other
aspects of our operating results or financial position, and the outcome of any contingencies. Any such forward-looking
statements are based on current expectations, estimates and projections of management. We intend for these forward-looking
statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as “may,”
“expect,” “believe,” “anticipate,” “project,” “plan,”
“intend,” “estimate,” and “continue,” and their opposites and similar expressions are
intended to identify forward-looking statements. We caution you that these statements are not guarantees of future
performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our
control that may influence the accuracy of the statements and the projections upon which the statements are based. Factors
that may affect our results include, but are not limited to, the risks and uncertainties discussed in the “Risk
Factors” section on page 3 of this prospectus, in our most recent Annual Report on Form 10-K or in other reports we
file with the Securities and Exchange Commission.
Any one or more of
these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements
made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those
expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking
statements, whether from new information, future events or otherwise.
You should rely
only on the information in this prospectus. 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 upon it. You should assume that the information
in this prospectus was accurate on the date of the front cover of this prospectus only. Our business, financial condition, results
of operations and prospects may have changed since that date.
USE OF PROCEEDS
Unless we inform you otherwise in the prospectus
supplement, we will use the net proceeds from the sale of the securities offered by this prospectus and the exercise price from
the exercise of any convertible securities, if any, for working capital and general corporate purposes, which may include research
and development funding, funding for clinical trials for our product candidates, manufacturing, acquisitions or investments in
businesses, products or technologies that are complementary to our own and capital expenditures. Pending their uses, we intend
to invest the net proceeds of this offering in interest-bearing bank accounts or in short-term, interest-bearing, investment-grade
securities.
THE SECURITIES WE MAY OFFER
General
The descriptions of the securities contained
in this prospectus, together with the applicable prospectus supplements, summarize all of the material terms and provisions of
the various types of securities that we may offer. We will describe in the applicable prospectus supplement relating to any securities
the particular terms of the securities offered by that prospectus supplement.
If any particular
terms of a security described in the applicable prospectus supplement differ from any of the terms described herein, then the terms
described herein will be deemed superseded by the terms set forth in that prospectus supplement
. We will also include in
the prospectus supplement information, where applicable, about material United States federal income tax considerations relating
to the securities, and the securities exchange, if any, on which the securities will be listed.
We may sell from time
to time, in one or more offerings:
|
•
|
warrants to purchase shares of common stock, preferred
stock or other securities;
|
|
•
|
subscription rights, and
|
|
•
|
units consisting of any combination of the securities listed
above.
|
In this prospectus,
we refer to the common stock, preferred stock, debt securities, warrants, subscription rights and units collectively as “securities.”
The total dollar amount of all securities that we may sell will not exceed $150,000,000.
If we issue debt securities
at a discount from their original stated principal amount, then, for purposes of calculating the total dollar amount of all securities
issued under this prospectus, we will treat the initial offering price of the debt securities as the total original principal amount
of the debt securities.
This prospectus may
not be used to consummate a sale of securities unless it is accompanied by a prospectus supplement.
DESCRIPTION OF CAPITAL STOCK
General
Our authorized capital stock consists of:
|
•
|
250,000,000 shares of common stock, par value $0.0001 per
share; and
|
|
•
|
10,000,000 shares of Preferred Stock, par value $0.0001
per share, of which as of the date of this prospectus 1,600,000 shares have been designated as Series A Preferred Stock.
|
As of close of business
on March 30, 2017, 89,333,282 shares of common stock were issued and outstanding and 1,600,000 shares of Series A Preferred Stock were
issued and outstanding.
The additional shares
of our authorized stock available for issuance might be issued at times and under circumstances so as to have a dilutive effect
on earnings per share and on the equity ownership of the holders of our common stock. The ability of our board of directors to
issue additional shares of stock could enhance the board’s ability to negotiate on behalf of the stockholders in a takeover
situation but could also be used by the board to make a change-in-control more difficult, thereby denying stockholders the potential
to sell their shares at a premium and entrenching current management. The following description is a summary of the material provisions
of our capital stock. You should refer to our amended and restated certificate of incorporation and by-laws, both of which are
on file with the SEC as exhibits to previous SEC filings, for additional information. The summary below is qualified by provisions
of applicable law.
Common Stock
Voting.
The holders of our
common stock are entitled to one vote for each share held of record on all matters on which the holders are entitled to vote (or
consent to).
Dividends.
The holders of our
common stock are entitled to receive, ratably, dividends only if, when and as declared by our Board of Directors out of funds legally
available therefor and after provision is made for each class of capital stock having preference over the common stock (including
the common stock).
Liquidation Rights.
In the
event of our liquidation, dissolution or winding-up, the holders of our common stock are entitled to share, ratably, in all assets
remaining available for distribution after payment of all liabilities and after provision is made for each class of capital stock
having preference over the common stock (including the common stock).
Conversion Rights.
The
holders of our common stock have no conversion rights.
Preemptive and Similar Rights.
The
holders of our common stock have no preemptive or similar rights.
Redemption/Put Rights.
There
are no redemption or sinking fund provisions applicable to the common stock. All of the outstanding shares of our common stock
are fully-paid and nonassessable.
Transfer Agent and Registrar
The transfer agent and registrar for our
common stock is VStock Transfer, LLC.
Preferred Stock
We are authorized to issue up to 10,000,000
shares of preferred stock, par value $0.0001 per share, (of which 1,600,000 shares have been designated as Series A Preferred Stock)
with such designations, rights, and preferences as may be determined from time to time by our Board of Directors. Accordingly,
our Board of Directors is empowered, without stockholder approval, to issue preferred stock with dividend, liquidation, conversion,
voting, or other rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance
of preferred stock could have the effect of restricting dividends on our common stock, diluting the voting power of our common
stock, impairing the liquidation rights of our common stock, or delaying or preventing a change in control of our company, all
without further action by our stockholders.
Our board of directors has the authority,
within the limitations and restrictions prescribed by law and without stockholder approval, to provide by resolution for the issuance
of shares of preferred stock, and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights,
conversion rights, voting rights, terms of redemption, liquidation preference and the number of shares constituting any series
of the designation of such series, by delivering an appropriate certificate of amendment to our amended and restated certificate
of incorporation to the Delaware Secretary of State pursuant to the Delaware General Corporation Law (the “DGCL”).
The issuance of preferred stock could have the effect of decreasing the market price of the common stock, impeding or delaying
a possible takeover and adversely affecting the voting and other rights of the holders of our common stock.
If we offer a specific series of preferred
stock under this prospectus, we will describe the terms of the preferred stock in the prospectus supplement for such offering and
will file a copy of the certificate establishing the terms of the preferred stock with the SEC. To the extent required, this description
will include:
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the title and stated value;
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the number of shares offered, the liquidation preference
per share and the purchase price;
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the dividend rate(s), period(s) and/or payment date(s),
or method(s) of calculation for such dividends;
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whether dividends will be cumulative or non-cumulative
and, if cumulative, the date from which dividends will accumulate;
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the procedures for any auction and remarketing, if any;
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the provisions for a sinking fund, if any;
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the provisions for redemption, if applicable;
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any listing of the preferred stock on any securities exchange
or market;
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whether the preferred stock will be convertible into our
common stock, and, if applicable, the conversion price (or how it will be calculated) and conversion period;
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whether the preferred stock will be exchangeable into debt
securities, and, if applicable, the exchange price (or how it will be calculated) and exchange period;
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voting rights, if any, of the preferred stock;
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a discussion of any material and/or special U.S. federal
income tax considerations applicable to the preferred stock;
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the relative ranking and preferences of the preferred stock
as to dividend rights and rights upon liquidation, dissolution or winding up of the affairs of Matinas; and
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any material limitations on issuance of any class or series
of preferred stock ranking senior to or on a parity with the series of preferred stock as to dividend rights and rights upon liquidation,
dissolution or winding up of Matinas.
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Transfer Agent and Registrar for Preferred Stock
The transfer agent and registrar for any
series or class of preferred stock will be set forth in each applicable prospectus supplement.
Series A Preferred Stock
In connection with the 2016 Private Placement,
our Board of Directors created out of the authorized and unissued shares of our preferred stock, a series of preferred stock comprised
of 1,600,000 shares of Series A Preferred Stock. We have 1,600,000 shares of our Series A Preferred Stock outstanding as of March
30, 2017, which are convertible into 16,000,000 shares of common stock based on the current conversion price.
Rank
. The Series A Preferred
Stock ranks above all other classes of stock outstanding as of the date hereof with respect to dividend rights and liquidation
preferences.
Dividends
. Holders of Series
A Preferred Stock are entitled to receive cumulative dividends at the rate per share of 8% per annum, payable in shares of our
common stock, which annual dividend will accumulate until such time as the shares of Series A Preferred Stock are converted, at
which time the accumulated dividend will be satisfied by delivery of shares of common stock (“PIK Shares”) at a price
per share of common stock equal to the then conversion price. Each holder of shares of Series A Preferred Stock will be entitled
to receive dividends equal, on an as-if-converted to shares of common stock basis, to and in the same form as dividends actually
paid on shares of our common stock when, as, and if such dividends are paid on shares of our common stock.
Liquidation
. Upon any dissolution,
liquidation or winding up, whether voluntary or involuntary, holders of Series A Preferred Stock will be entitled to (i) first
receive distributions out of our assets in an amount per share equal to $5.00 (the “Stated Value”) plus all accrued
and unpaid dividends, whether capital or surplus before any distributions shall be made on any shares of common stock and (ii)
second, on an as-converted basis alongside the common stock.
Conversion
. Upon the earlier
of (i) notice by us to the holders that we have elected to convert all outstanding shares of Series A Preferred Stock; provided
however that in the event we elect to force automatic conversion pursuant to this clause (i), the conversion date for purposes
of calculating the accrued dividend is deemed to be July 29, 2019, which is the third anniversary of the initial closing, (ii)
July 29, 2019, (iii) the approval of the MAT2203 product candidate by the U.S. Food and Drug Administration or the European Medicines
Agency (the “Regulatory Approval”) or (iv) the Regulatory Approval of MAT2501 product candidate, without any action
on the part of the holder (each of the foregoing, a “Mandatory Conversion Date”), all of the outstanding shares of
Series A Preferred Stock will automatically convert to common stock (a “Mandatory Conversion”). In addition, each share
of Series A Preferred Stock shall be convertible, at any time and from time to time at the option of the holder thereof, into that
number of shares of common stock determined by dividing the Stated Value of such Series A Preferred Stock by the conversion price.
The conversion price currently is $0.50 per share of common stock and is subject to adjustment described below.
Stock Dividends and Stock Splits
.
If we pay a stock dividend or otherwise make a distribution payable in shares of common stock on shares of common stock or any
other common stock equivalents, subdivide or combine outstanding common stock, or reclassify common stock, the conversion price
will be adjusted by multiplying the then conversion price by a fraction, the numerator of which shall be the number of shares of
common stock outstanding immediately before such event, and the denominator of which shall be the number of shares outstanding
immediately after such event.
Fundamental Transaction
. If
we effect a fundamental transaction, then upon any subsequent conversion of Series A Preferred Stock, the holder thereof shall
have the right to receive, for each share of common stock that would have been issuable upon such conversion immediately prior
to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring corporation’s
common stock or of our common stock, if we are the surviving corporation, and any additional consideration receivable as a result
of such fundamental transaction by a holder of the number of shares of common stock into which shares of our Series A Preferred
Stock is convertible immediately prior to such fundamental transaction. A fundamental transaction means: (i) our merger or consolidation
with or into another entity, (ii) any sale of all or substantially all of our assets in one transaction or a series of related
transactions, or (iii) any reclassification of our common stock or any compulsory share exchange by which common stock is effectively
converted into or exchanged for other securities, cash or property.
Voting Rights.
Except
as otherwise provided in the Certificate of Designation or required by law, shares of our Series A Preferred Stock have no class
voting rights. The Certificate of Designations provides that each share of Series A Preferred Stock will entitle its holder to
vote with the common stock on an as-if converted to shares of common stock basis. Notwithstanding certain protections in the Certificate
of Designations, Delaware law also provides holders of preferred stock with certain rights. The holders of the outstanding shares
of Series A Convertible Preferred Stock generally will be entitled to vote as a class upon a proposed amendment to our certificate
of incorporation if the amendment would:
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increase or decrease the aggregate number of authorized shares of our Series A Convertible Preferred Stock;
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increase or decrease the par value of the shares of our Series A Convertible Preferred Stock; or
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alter or change the powers, preferences, or special rights of the shares of our Series A Convertible Preferred Stock so as to affect them adversely.
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Fractional Shares
. No fractional
shares of common stock will be issued upon conversion of shares of our Series A Preferred Stock. Rather, we shall round up to the
next whole share.
Royalties
. Pursuant to the
terms of the Certificate of Designations for our outstanding Series A Preferred Stock, we may be required to pay, subject to certain
vesting requirements, in the aggregate, a royalty equal to (i) 4.5% of Net Sales (as defined in the Certificate of Designation)
from MAT 2203 and/or MAT 2501, subject in all cases to a cap of $25 million per calendar year, and (ii) 7.5% of Licensing Proceeds
(as defined in the Certificate of Designations) from MAT2203 and/or MAT2501, subject in all cases to a cap of $10 million per calendar
year. Our obligation to pay such royalty will expire when the patents covering the applicable product expire, which is currently
expected to be in 2033.
Royalty Vesting
. The shares
of Series A Preferred Stock will vest, in equal thirds, upon each of the first, second and third vesting dates; provided however,
if the Series A Preferred Stock automatically convert into common stock prior to July 29, 2019, which is the 36 month anniversary
of the initial closing of the 2016 Private Placement, then the outstanding shares of Series A Preferred Stock shall be deemed to
be fully vested as of the date of conversion. Once a vesting date has occurred, the portion that vested on such vesting date shall
be unaffected by any conversion thereafter of such shares of our Series A Preferred Stock.
Each holder is entitled to a portion of
the royalty payment, if any, as determined based on the length of time that such holder’s shares of Series A Preferred Stock
remain unconverted. If a holder elects to convert all of his shares of Series A Preferred Stock into common stock prior to July
29, 2017, the first 12 month anniversary after the Initial Closing, the holder will forfeit any rights to future royalty payments,
if any. If a holder elects to convert any portion of his Series A Preferred Stock to common stock at any time prior to the third
vesting date, such holder will forfeit any rights to future royalty payments if any, with respect to such the unvested portion
of such converted shares.
Allocation of Royalty Payment
.
Once the aggregate Royalty Payment Amount is calculated based on the criteria set forth above under “Royalties,” that
amount will be allocated to the holders of the Participating Royalty Interests (as defined in the Certificate of Designations)
based on their pro rata ownership. The royalty payable to each holder shall be calculated as follows:
(i) Prior to the third Vesting Date, the royalty
payable to each holder will be equal to the aggregate Royalty Payment Amount divided by the aggregate Participating Royalty Interests
on the applicable record date multiplied by the number of Participating Royalty Interests held by such holder on the applicable
record date.
(ii) On or after the third Vesting Date, the
Royalty payable to each holder will be calculated by multiplying the aggregate Royalty Payment Amount by the percentage set forth
in each holder’s Royalty Payment Rights certificate. The percentage set forth in each Royalty Payment Rights certificate
will be calculated as follows:
Number of Participating Royalty Interests
Held by Investor on the Third Vesting Date
Total Participating Royalty Interests on
the Third Vesting Date
Separability
. The royalty
payment rights may not be transferred separately from the Series A Preferred Stock until July 29, 2019. Prior to July 29, 2019,
if a holder transfers any of its shares of Series A Preferred Stock, such holder will lose any rights to any future royalty payments
with respect to the shares of Series A Preferred Stock that were transferred. After July 29, 2019, we will issue a certificate
representing the royalty payment rights to (i) each holder of Series A Preferred Stock at such 36 month anniversary date and (ii)
any holder of Series A Preferred Stock which converted its shares of Series A Preferred Stock prior to July 29, 2019 but is listed
on a list of holders as at a vesting date as a person entitled to receive royalty payments. Following the issuance of royalty payment
rights certificates, such royalty payment rights may be transferred, subject to the availability of an exemption from registration
under applicable state and federal securities laws, separately from the Series A Preferred Stock.
Unsecured Obligations
. The
royalty payment rights are unsecured obligations of ours.
VStock Transfer, LLC is the transfer agent
and registrar for our Series A Preferred Stock.
Anti-takeover Effects of Delaware Law
and of our Amended and Restated Certificate of Incorporation
The following paragraphs
summarize certain provisions of the DGCL and our amended and restated certificate of incorporation that may have the effect of
discouraging an acquisition of Matinas. The summary does not purport to be complete and is subject to and qualified in its entirety
by reference to the DGCL and our amended and restated certificate of incorporation and by-laws, copies of which are on file with
the SEC. Please refer to “Additional Information” below for directions on obtaining these documents.
Section 203 of the Delaware General
Corporation Law
We are subject to Section
203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business combination with
any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with
the following exceptions:
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before such date, the board of directors of the corporation
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 began, excluding for purposes of determining the voting stock outstanding (but not the
outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers
and (ii) 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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on or after such date, the business combination is approved
by the board of directors and authorized at an annual or special meeting of the stockholders, 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.
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In general, Section
203 defines business combination to include the following:
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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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subject to certain exceptions, any transaction that results
in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
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any transaction involving the corporation that has the
effect of increasing the proportionate share of the stock or 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 loss, advances, guarantees, pledges or other financial benefits by or through the corporation.
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In general, Section
203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and
associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own,
15% or more of the outstanding voting stock of the corporation.
Certificate of Incorporation and Bylaws
Our certificate of incorporation and bylaws
contain provisions that could have the effect of discouraging potential acquisition proposals or tender offers or delaying or preventing
a change of control of our company. These provisions are as follows:
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they provide that special meetings of stockholders may be called only by the board of directors, President or our Chairman of the Board of Directors, or at the request in writing by stockholders of record owning at least fifty (50%) percent of the issued and outstanding voting shares of common stock;
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they do not include a provision for cumulative voting in the election of directors. Under cumulative voting, a minority stockholder holding a sufficient number of shares may be able to ensure the election of one or more directors. The absence of cumulative voting may have the effect of limiting the ability of minority stockholders to effect changes in our board of directors; and
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they allow us to issue “blank check” preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval.
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Potential Effects of Authorized but
Unissued Stock
We have shares of common
stock and preferred stock available for future issuance without stockholder approval. We may utilize these additional shares for
a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate corporate acquisitions
or payment as a dividend on the capital stock.
The existence of unissued
and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons friendly to current
management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt to obtain
control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our management.
In addition, the board of directors has the discretion to determine designations, rights, preferences, privileges and restrictions,
including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of each series of
preferred stock, all to the fullest extent permissible under the DGCL and subject to any limitations set forth in our amended and
restated certificate of incorporation. The purpose of authorizing the board of directors to issue preferred stock and to determine
the rights and preferences applicable to such preferred stock is to eliminate delays associated with a stockholder vote on specific
issuances. The issuance of preferred stock, while providing desirable flexibility in connection with possible financings, acquisitions
and other corporate purposes, could have the effect of making it more difficult for a third-party to acquire, or could discourage
a third-party from acquiring, a majority of our outstanding voting stock.
DESCRIPTION OF STOCK WARRANTS
We summarize below some of the provisions
that will apply to the warrants unless the applicable prospectus supplement provides otherwise. This summary may not contain all
information that is important to you. The complete terms of the warrants will be contained in the applicable warrant certificate
and warrant agreement. These documents have been or will be included or incorporated by reference as exhibits to the registration
statement of which this prospectus is a part. You should read the warrant certificate and the warrant agreement. You should also
read the prospectus supplement, which will contain additional information and which may update or change some of the information
below.
General
We may issue, together with common or preferred
stock as units or separately, warrants for the purchase of shares of our common stock, shares of our preferred stock, debt securities
or other securities. The terms of each warrant will be discussed in the applicable prospectus supplement relating to the particular
series of warrants. The form(s) of certificate representing the warrants and/or the warrant agreement, will be, in each case, filed
with the SEC as an exhibit to a document incorporated by reference in the registration statement of which this prospectus is a
part on or prior to the date of any prospectus supplement relating to an offering of the particular warrant. The following summary
of material provisions of the warrants and the warrant agreements are subject to, and qualified in their entirety by reference
to, all the provisions of the warrant agreement and warrant certificate applicable to a particular series of warrants.
The prospectus supplement relating to any
series of warrants that are offered by this prospectus will describe, among other things, the following terms to the extent they
are applicable to that series of warrants:
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the procedures and conditions relating to the exercise
of the warrants;
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the number of shares of our common or preferred stock,
if any, issued with the warrants;
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the date, if any, on and after which the warrants and any
related shares of our common or preferred stock will be separately transferable;
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the offering price of the warrants, if any;
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the number of shares of our common or preferred stock,
debt securities or other securities which may be purchased upon exercise of the warrants and the price or prices at which such
securities may be purchased upon exercise;
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the date on which the right to exercise the warrants will
begin and the date on which the right will expire;
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a discussion of any material United States federal income
tax considerations applicable to the exercise of the warrants;
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anti-dilution provisions of the warrants, if any;
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call provisions of the warrants, if any; and
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any other material terms of the warrants.
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Each warrant may entitle
the holder to purchase for cash, or, in limited circumstances, by effecting a cashless exercise for, the number of shares of our
common or preferred stock at the exercise price that is described in the applicable prospectus supplement. Warrants will be exercisable
during the period of time described in the applicable prospectus supplement. After that period, unexercised warrants will be void.
Warrants may be exercised in the manner described in the applicable prospectus supplement.
A holder of a warrant
will not have any of the rights of a holder of our common or preferred stock before the stock is purchased upon exercise of the
warrant. Therefore, before a warrant is exercised, the holder of the warrant will not be entitled to receive any dividend payments
or exercise any voting or other rights associated with shares of our common or preferred stock which may be purchased when the
warrant is exercised.
Transfer Agent and Registrar
The transfer agent and registrar, if any,
for any warrants will be set forth in the applicable prospectus supplement.
DESCRIPTION OF DEBT SECURITIES
We summarize below some of the provisions
that will apply to the debt securities unless the applicable prospectus supplement provides otherwise. This summary may not contain
all information that is important to you. The debt securities may be issued pursuant to, in the case of senior debt securities,
a senior indenture, and in the case of subordinated debt securities, a subordinated indenture, in each case in the forms filed
as exhibits to this registration statement, which we refer to as the “
indentures
.” The indentures will be entered
into between us and a trustee to be named prior to the issuance of any debt securities, which we refer to as the “
trustee
.”
The indentures will not limit the amount of debt securities that can be issued thereunder and will provide that the debt securities
may be issued from time to time in one or more series pursuant to the terms of one or more securities resolutions or supplemental
indentures creating such series.
The complete terms of the debt securities
will be contained in the applicable indenture for the particular offering of debt securities itself which will describe the terms
and definitions of the offered debt securities and contain additional information about such debt securities. You should also read
the prospectus supplement, which will contain additional information and which may update or change some of the information below.
General
When we offer to sell a particular series
of debt securities, we will describe the specific terms of the securities in a prospectus supplement. The prospectus supplement
will set forth the following terms, as applicable, of the debt securities offered thereby:
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the designation, aggregate principal amount, currency or composite currency and denominations;
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the price at which such debt securities will be issued and, if an index formula or other method is used, the method for determining amounts of principal or interest;
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the maturity date and other dates, if any, on which principal will be payable;
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whether or not the debt securities will be secured or unsecured, and the terms of any secured debt;
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whether the debt securities rank as senior debt, senior subordinated debt, subordinated debt or any combination thereof, and the terms of any subordination;
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the interest rate (which may be fixed or variable), if any;
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the date or dates from which interest will accrue and on which interest will be payable, and the record dates for the payment of interest;
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the manner of paying principal and interest;
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the place or places where principal and interest will be payable;
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the terms of any mandatory or optional redemption by us or any third party including any sinking fund;
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the terms of any conversion or exchange;
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the terms of any redemption at the option of holders or put by the holders;
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any tax indemnity provisions;
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if the debt securities provide that payments of principal or interest may be made in a currency other than that in which debt securities are denominated, the manner for determining such payments;
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the portion of principal payable upon acceleration of a Discounted Debt Security (as defined below);
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whether and upon what terms debt securities may be defeased;
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any events of default or covenants in addition to or in lieu of those set forth in the indentures;
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provisions for electronic issuance of debt securities or for debt securities in uncertificated form; and
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any additional provisions or other special terms not inconsistent with the provisions of the indentures, including any terms that may be required or advisable under United States or other applicable laws or regulations, or advisable in connection with the marketing of the debt securities.
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Debt securities of any series may be issued
as registered debt securities or uncertificated debt securities, in such denominations as specified in the terms of the series.
Securities may be issued under the indentures
as Discounted Debt Securities to be offered and sold at a substantial discount from the principal amount thereof. Special United
States federal income tax and other considerations applicable thereto will be described in the prospectus supplement relating to
such Discounted Debt Securities. “
Discounted Debt Security
” means a security where the amount of principal due
upon acceleration is less than the stated principal amount.
We are not obligated to issue all debt securities
of one series at the same time and, unless otherwise provided in the prospectus supplement, we may reopen a series, without the
consent of the holders of the debt securities of that series, for the issuance of additional debt securities of that series. Additional
debt securities of a particular series will have the same terms and conditions as outstanding debt securities of such series, except
for the date of original issuance and the offering price, and will be consolidated with, and form a single series with, such outstanding
debt securities.
Ranking
The senior debt securities will rank equally
with all of our other senior and unsubordinated debt. Our secured debt, if any, will be effectively senior to the senior debt securities
to the extent of the value of the assets securing such debt. The subordinated debt securities will be subordinate and junior in
right of payment to all of our present and future senior indebtedness to the extent and in the manner described in the prospectus
supplement and as set forth in the board resolution, officer’s certificate or supplemental indenture relating to such offering.
We have only a stockholder’s claim
on the assets of our subsidiaries. This stockholder’s claim is junior to the claims that creditors of our subsidiaries have
against our subsidiaries. Holders of our debt securities will be our creditors and not creditors of any of our subsidiaries. As
a result, all the existing and future liabilities of our subsidiaries, including any claims of their creditors, will effectively
be senior to the debt securities with respect to the assets of our subsidiaries. In addition, to the extent that we issue any secured
debt, the debt securities will be effectively subordinated to such secured debt to the extent of the value of the assets securing
such secured debt.
The debt securities will be obligations
exclusively of Matinas BioPharma Holdings, Inc. To the extent that our ability to service our debt, including the debt securities,
may be dependent upon the earnings of our subsidiaries, our ability to do so will be dependent on the ability of our subsidiaries
to distribute those earnings to us as dividends, loans or other payments.
Certain Covenants
Any covenants that may apply to a particular
series of debt securities will be described in the prospectus supplement relating thereto.
Successor Obligor
The indentures provide that, unless otherwise
specified in the securities resolution or supplemental indenture establishing a series of debt securities, we shall not consolidate
with or merge into, or transfer all or substantially all of our assets to, any person in any transaction in which we are not the
survivor, unless:
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the person is organized under the laws of the United States or a jurisdiction within the United States;
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the person assumes by supplemental indenture all of our obligations under the relevant indenture, the debt securities and any coupons;
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immediately after the transaction no Default (as defined below) exists; and
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we deliver to the trustee an officers’ certificate and opinion of counsel stating that the transaction complies with the foregoing requirements.
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In such event, the successor will be substituted for us, and
thereafter all of our obligations under the relevant indenture, the debt securities and any coupons will terminate.
Exchange of Debt Securities
Registered debt securities may be exchanged
for an equal aggregate principal amount of registered debt securities of the same series and date of maturity in such authorized
denominations as may be requested upon surrender of the registered debt securities at an agency of the Company maintained for such
purpose and upon fulfillment of all other requirements of such agent.
Defaults and Remedies
Unless the securities resolution or supplemental
indenture establishing the series otherwise provides (in which event the prospectus supplement will so state), an “
Event
of Default
” with respect to a series of debt securities will occur if:
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we default in any payment of interest on any debt securities of such series when the same becomes due and payable and the default continues for a period of 30 days;
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we default in the payment of the principal and premium, if any, of any debt securities of such series when the same becomes due and payable at maturity or upon redemption, acceleration or otherwise and such default shall continue for five or more days;
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we default in the performance of any of our other agreements applicable to the series and the default continues for 30 days after the notice specified below;
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(4)
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a court of competent jurisdiction enters an order or decree under any Bankruptcy Law (as defined below) that:
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(A)
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is for relief against us in an involuntary case,
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(B)
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appoints a Custodian (as defined below) for us or for all or substantially all of our property, or
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(C)
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orders the liquidation of us, and the order or decree remains unstayed and in effect for 90 days;
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(5)
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we pursuant to or within the meaning of any Bankruptcy Law:
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(A)
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commence a voluntary case,
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(B)
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consent to the entry of an order for relief against us in an involuntary case,
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(C)
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consent to the appointment of a Custodian for us or for all or substantially all of our property, or
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(D)
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make a general assignment for the benefit of our creditors; or
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(6)
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there occurs any other Event of Default provided for in such series.
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The term “
Bankruptcy Law
”
means Title 11 of the United States Code or any similar Federal or State law for the relief of debtors. The term “
Custodian
”
means any receiver, trustee, assignee, liquidator or a similar official under any Bankruptcy Law.
“
Default
” means any event
which is, or after notice or passage of time would be, an Event of Default. A Default under subparagraph (3) above is not an Event
of Default until the trustee or the holders of at least 25% in principal amount of the series notify us of the Default and we do
not cure the Default within the time specified after receipt of the notice.
The trustee may require indemnity satisfactory
to it before it enforces the indentures or the debt securities of the series. Subject to certain limitations, holders of a majority
in principal amount of the debt securities of the series may direct the trustee in its exercise of any trust or power with respect
to such series. Except in the case of Default in payment on a series, the trustee may withhold from securityholders of such series
notice of any continuing Default if the trustee determines that withholding notice is in the interest of such securityholders.
We are required to furnish the trustee annually a brief certificate as to our compliance with all conditions and covenants under
the indentures.
The indentures do not have cross-default
provisions. Thus, a default by us on any other debt, including any other series of debt securities, would not constitute an Event
of Default.
Amendments and Waivers
The indentures and the debt securities or
any coupons of the series may be amended, and any Default may be waived as follows:
Unless the securities resolution or supplemental
indenture otherwise provides (in which event the applicable prospectus supplement will so state), the debt securities and the indentures
may be amended with the consent of the holders of a majority in principal amount of the debt securities of all series affected
voting as one class. Unless the securities resolution or supplemental indenture otherwise provides (in which event the applicable
prospectus supplement will so state), a Default other than a Default in payment on a particular series may be waived with the consent
of the holders of a majority in principal amount of the debt securities of the series. However, without the consent of each securityholder
affected, no amendment or waiver may:
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change the fixed maturity of or the time for payment of interest on any debt security;
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reduce the principal, premium or interest payable with respect to any debt security;
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change the place of payment of a debt security or the currency in which the principal or interest on a debt security is payable;
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change the provisions for calculating any redemption or repurchase price with respect to any debt security;
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reduce the amount of debt securities whose holders must consent to an amendment or waiver;
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make any change that materially adversely affects the right to convert any debt security;
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waive any Default in payment of principal of or interest on a debt security; or
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adversely affect any holder’s rights with respect to redemption or repurchase of a debt security.
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Without the consent of any securityholder, the indentures or
the debt securities may be amended to:
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provide for assumption of our obligations to securityholders in the event of a merger or consolidation requiring such assumption;
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to cure any ambiguity, omission, defect or inconsistency;
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to conform the terms of the debt securities to the description thereof in the prospectus and prospectus supplement offering such debt securities;
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to create a series and establish its terms;
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to provide for assumption of our obligations to securityholders in the event of a merger or consolidation requiring such assumption;
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to make any change that does not adversely affect the rights of any securityholder;
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to add to our covenants; or
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to make any other change to the indentures so long as no debt securities are outstanding.
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Conversion Rights
Any securities resolution or supplemental
indenture establishing a series of debt securities may provide that the debt securities of such series will be convertible at the
option of the holders thereof into or for our common stock or other equity or debt instruments. The securities resolution or supplemental
indenture may establish, among other things, (1) the number or amount of shares of common stock or other equity or debt instruments
for which $1,000 aggregate principal amount of the debt securities of the series is convertible, as may be adjusted pursuant to
the terms of the relevant indenture and the securities resolution; and (2) provisions for adjustments to the conversion rate and
limitations upon exercise of the conversion right. The indentures provide that we will not be required to make an adjustment in
the conversion rate unless the adjustment would require a cumulative change of at least 1% in the conversion rate. However, we
will carry forward any adjustments that are less than 1% of the conversion rate and take them into account in any subsequent adjustment
of the conversion rate.
Legal Defeasance and Covenant Defeasance
Debt securities of a series may be defeased
in accordance with their terms and, unless the securities resolution or supplemental indenture establishing the terms of the series
otherwise provides, as set forth below. We at any time may terminate as to a series all of our obligations (except for certain
obligations, including obligations with respect to the defeasance trust and obligations to register the transfer or exchange of
a debt security, to replace destroyed, lost or stolen debt securities and coupons and to maintain paying agencies in respect of
the debt securities) with respect to the debt securities of the series and any related coupons and the relevant indenture, which
we refer to as legal defeasance. We at any time may terminate as to a series our obligations with respect to any restrictive covenants
which may be applicable to a particular series, which we refer to as covenant defeasance.
We may exercise our legal defeasance option
notwithstanding our prior exercise of our covenant defeasance option. If we exercise our legal defeasance option, a series may
not be accelerated because of an Event of Default. If we exercise our covenant defeasance option, a series may not be accelerated
by reference to any covenant which may be applicable to a series.
To exercise either defeasance option as
to a series, we must (1) irrevocably deposit in trust with the trustee (or another trustee) money or U.S. Government Obligations
(as defined below), deliver a certificate from a nationally recognized firm of independent accountants expressing their opinion
that the payments of principal and interest when due on the deposited U.S. Government Obligations, without reinvestment, plus any
deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay the principal
and interest when due on all debt securities of such series to maturity or redemption, as the case may be; and (2) comply with
certain other conditions. In particular, we must obtain an opinion of tax counsel that the defeasance will not result in recognition
of any gain or loss to holders for federal income tax purposes.
“
U.S. Government Obligations
”
means direct obligations of the United States or any agency or instrumentality of the United States, the payment of which is unconditionally
guaranteed by the United States, which, in either case, have the full faith and credit of the United States pledged for payment
and which are not callable at the issuer’s option, or certificates representing an ownership interest in such obligations.
Regarding the Trustee
Unless otherwise indicated in a prospectus
supplement, the trustee will also act as depository of funds, transfer agent, paying agent and conversion agent, as applicable,
with respect to the debt securities. We may remove the trustee as the trustee under a given indenture with or without cause if
we so notify the trustee three months in advance and if no Default occurs during the three-month period. The indenture trustee
may also provide additional unrelated services to us as a depository of funds, registrar, trustee and similar services.
Governing Law
The indentures and the debt securities will
be governed by New York law, except to the extent that the Trust Indenture Act of 1939 is applicable.
DESCRIPTION OF SUBSCRIPTION
RIGHTS
We may issue subscription rights to purchase
our common stock, preferred stock or debt securities. These subscription rights may be offered independently or together with any
other security offered hereby and may or may not be transferable by the stockholder receiving the subscription rights in such offering.
In connection with any offering of subscription rights, we may enter into a standby arrangement with one or more underwriters or
other purchasers pursuant to which the underwriters or other purchasers may be required to purchase any securities remaining unsubscribed
for after such offering.
The prospectus supplement relating to any
subscription rights we offer, if any, will, to the extent applicable, include specific terms relating to the offering, including
some or all of the following:
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the price, if any, for the subscription rights;
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the exercise price payable for our common stock, preferred stock or debt securities upon the exercise of the subscription rights;
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the number of subscription rights to be issued to each stockholder;
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the number and terms of our common stock, preferred stock or debt securities which may be purchased per each subscription right;
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the extent to which the subscription rights are transferable;
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any other terms of the subscription rights, including the terms, procedures and limitations relating to the exchange and exercise of the subscription rights;
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the date on which the right to exercise the subscription rights shall commence, and the date on which the subscription rights shall expire;
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the extent to which the subscription rights may include an over-subscription privilege with respect to unsubscribed securities or an over-allotment privilege to the extent the securities are fully subscribed; and
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if applicable, the material terms of any standby underwriting or purchase arrangement which may be entered into by Matinas in connection with the offering of subscription rights.
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DESCRIPTION OF UNITS
We may issue units comprised of one or more
of the other securities described in this prospectus 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 (but, to the extent convertible securities are included in the units, the holder of the units
will be deemed the holder of the convertible securities and not the holder of the underlying securities). 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. The applicable prospectus supplement may describe:
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the designation and terms of the units and of the securities
comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
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any provisions for the issuance, payment, settlement, transfer
or exchange of the units or of the securities comprising the units;
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the terms of the unit agreement governing the units;
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United States federal income tax considerations relevant
to the units; and
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whether the units will be issued in fully registered global
form.
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This summary of certain
general terms of units and any summary description of units in the applicable prospectus supplement do not purport to be complete
and are qualified in their entirety by reference to all provisions of the applicable unit agreement and, if applicable, collateral
arrangements and depositary arrangements relating to such units. The forms of the unit agreements and other documents relating
to a particular issue of units will be filed with the SEC each time we issue units, and you should read those documents for provisions
that may be important to you.
FORMS OF SECURITIES
Each debt security and, to the extent applicable,
warrant, subscription right and unit, will be represented either by a certificate issued in definitive form to a particular investor
or by one or more global securities representing the entire issuance of securities. Certificated securities in definitive form
and global securities will be issued in registered form. Definitive securities name you or your nominee as the owner of the security,
and in order to transfer or exchange these securities or to receive payments other than interest or other interim payments, you
or your nominee must physically deliver the securities to the trustee, registrar, paying agent or other agent, as applicable. Global
securities name a depositary or its nominee as the owner of the debt securities or warrants represented by these global securities.
The depositary maintains a computerized system that will reflect each investor’s beneficial ownership of the securities through
an account maintained by the investor with its broker/dealer, bank, trust company or other representative, as we explain more fully
below.
Global Securities
Registered Global Securities
. We
may issue the registered debt securities and, to the extent applicable, warrants, subscription rights and units in the form of
one or more fully registered global securities that will be deposited with a depositary or its nominee identified in the applicable
prospectus supplement and registered in the name of that depositary or nominee. In those cases, one or more registered global securities
will be issued in a denomination or aggregate denominations equal to the portion of the aggregate principal or face amount of the
securities to be represented by registered global securities. Unless and until it is exchanged in whole for securities in definitive
registered form, a registered global security may not be transferred except as a whole by and among the depositary for the registered
global security, the nominees of the depositary or any successors of the depositary or those nominees.
If not described below, any specific terms
of the depositary arrangement with respect to any securities to be represented by a registered global security will be described
in the prospectus supplement relating to those securities. We anticipate that the following provisions will apply to all depositary
arrangements.
Ownership of beneficial interests in a registered
global security will be limited to persons, called participants, that have accounts with the depositary or persons that may hold
interests through participants. Upon the issuance of a registered global security, the depositary will credit, on its book-entry
registration and transfer system, the participants’ accounts with the respective principal or face amounts of the securities
beneficially owned by the participants. Any dealers, underwriters or agents participating in the distribution of the securities
will designate the accounts to be credited. Ownership of beneficial interests in a registered global security will be shown on,
and the transfer of ownership interests will be effected only through, records maintained by the depositary, 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 some purchasers of securities take physical delivery of these securities in definitive form. These
laws may impair your ability to own, transfer or pledge beneficial interests in registered global securities.
So long as the depositary, or its nominee,
is the registered owner of a registered global security, that depositary or its nominee, as the case may be, will be considered
the sole owner or holder of the securities represented by the registered global security for all purposes under the applicable
indenture or warrant agreement. Except as described below, owners of beneficial interests in a registered global security will
not be entitled to have the securities represented by the registered global security registered in their names, will not receive
or be entitled to receive physical delivery of the securities in definitive form and will not be considered the owners or holders
of the securities under the applicable indenture or warrant agreement. Accordingly, each person owning a beneficial interest in
a registered global security must rely on the procedures of the depositary for that registered global security and, if that person
is not a participant, on the procedures of the participant through which the person owns its interest, to exercise any rights of
a holder under the applicable indenture or warrant agreement. We understand that under existing industry practices, if we request
any action of holders or if an owner of a beneficial interest in a registered global security desires to give or take any action
that a holder is entitled to give or take under the applicable indenture or warrant agreement, the depositary for the registered
global security would authorize the participants holding the relevant beneficial interests to give or take that action, and the
participants would authorize beneficial owners owning through them to give or take that action or would otherwise act upon the
instructions of beneficial owners holding through them.
Principal, premium, if any, and interest
payments on debt securities and any payments to holders with respect to warrants represented by a registered global security registered
in the name of a depositary or its nominee will be made to the depositary or its nominee, as the case may be, as the registered
owner of the registered global security. None of Matinas, the trustees, the warrant agents or any other agent of Matinas, agent
of the trustees or agent of the warrant agents will have any responsibility or liability for any aspect of the records relating
to payments made on account of beneficial ownership interests in the registered global security or for maintaining, supervising
or reviewing any records relating to those beneficial ownership interests.
We expect that the depositary for any of
the securities represented by a registered global security, upon receipt of any payment of principal, premium, interest or other
distribution of underlying securities or other property to holders on that registered global security, will immediately credit
participants’ accounts in amounts proportionate to their respective beneficial interests in that registered global security
as shown on the records of the depositary. We also expect that payments by participants to owners of beneficial interests in a
registered global security held through 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.
If the depositary for any of these securities
represented by a registered global security is at any time unwilling or unable to continue as depositary or ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended (the “
Exchange Act
”), and a successor
depositary registered as a clearing agency under the Exchange Act is not appointed by us within 90 days, we will issue securities
in definitive form in exchange for the registered global security that had been held by the depositary. Any securities issued in
definitive form in exchange for a registered global security will be registered in the name or names that the depositary gives
to the relevant trustee or warrant agent or other relevant agent of ours or theirs. It is expected that the depositary’s
instructions will be based upon directions received by the depositary from participants with respect to ownership of beneficial
interests in the registered global security that had been held by the depositary.
PLAN OF DISTRIBUTION
Initial Offering and Sale of Securities
Unless otherwise set forth in a prospectus
supplement accompanying this prospectus, we, and certain holders of our securities, may sell the securities being offered hereby,
from time to time, by one or more of the following methods:
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to or through underwriting syndicates represented by managing
underwriters;
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through one or more underwriters without a syndicate for
them to offer and sell to the public;
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through dealers or agents; and
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to investors directly in negotiated sales or in competitively
bid transactions.
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Offerings of securities
covered by this prospectus also may be made into an existing trading market for those securities in transactions at other than
a fixed price, either:
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on or through the facilities of the NYSE MKT or any other
securities exchange or quotation or trading service on which those securities may be listed, quoted, or traded at the time of
sale; and/or
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to or through a market maker otherwise than on the securities
exchanges or quotation or trading services set forth above.
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At-the-market offerings,
if any, will be conducted by underwriters acting as principal or agent of the Company, who may also be third-party sellers of securities
as described above. The prospectus supplement with respect to the offered securities will set forth the terms of the offering of
the offered securities, including:
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the name or names of any underwriters, dealers or agents;
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the purchase price of the offered securities and the proceeds
to us from such sale;
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any underwriting discounts and commissions or agency fees
and other items constituting underwriters’ or agents’ compensation;
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any initial public offering price and any discounts or
concessions allowed or reallowed or paid to dealers;
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any securities exchange on which such offered securities
may be listed; and
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any underwriter, agent or dealer involved in the offer
and sale of any series of the securities will be named in the prospectus supplement.
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The distribution of
the securities may be effected from time to time in one or more transactions:
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at fixed prices, which may be changed;
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at market prices prevailing at the time of the sale;
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at varying prices determined at the time of sale; or
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Each prospectus supplement
will set forth the manner and terms of an offering of securities including:
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whether that offering is being made to underwriters or
through agents or directly;
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the rules and procedures for any auction or bidding process,
if used;
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the securities’ purchase price or initial public
offering price; and
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the proceeds we anticipate from the sale of the securities,
if any.
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In addition, we may
enter into derivative or hedging transactions with third parties, 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 sell securities covered by and pursuant to this prospectus and an applicable prospectus supplement. If so,
the third party may use securities pledged by us or 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 an 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.
Sales Through Underwriters
If underwriters are
used in the sale of some or all of the securities covered by this prospectus, the underwriters will acquire the securities for
their own account. The underwriters may resell the securities, either directly to the public or to securities dealers, at various
times in one or more transactions, including negotiated 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 certain conditions. Unless
indicated otherwise in a prospectus supplement, the underwriters will be obligated to purchase all the securities of the series
offered if any of the securities are purchased.
Any initial public
offering price and any concessions allowed or reallowed to dealers may be changed intermittently.
Sales Through Agents
Unless otherwise indicated
in the applicable prospectus supplement, when securities are sold through an agent, the designated agent will agree, for the period
of its appointment as agent, to use its best efforts to sell the securities for our account and will receive commissions from us
as will be set forth in the applicable prospectus supplement.
Securities bought in
accordance with a redemption or repayment under their terms also may be offered and sold, if so indicated in the applicable prospectus
supplement, in connection with a remarketing by one or more firms acting as principals for their own accounts or as agents for
us. Any remarketing firm will be identified and the terms of its agreement, if any, with us and its compensation will be described
in the prospectus supplement. Remarketing firms may be deemed to be underwriters in connection with the securities remarketed by
them.
If so indicated in
the applicable prospectus supplement, we may authorize agents, underwriters or dealers to solicit offers by certain specified institutions
to purchase securities at a price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment
and delivery on a future date specified in the prospectus supplement. These contracts will be subject only to those conditions
set forth in the applicable prospectus supplement, and the prospectus supplement will set forth the commissions payable for solicitation
of these contracts.
Direct Sales
We may also sell offered
securities directly to institutional investors or others. In this case, no underwriters or agents would be involved. The terms
of such sales will be described in the applicable prospectus supplement.
General Information
Broker-dealers, agents
or underwriters may receive compensation in the form of discounts, concessions or commissions from us and/or the purchasers of
securities for whom such broker-dealers, agents or underwriters may act as agents or to whom they sell as principal, or both (this
compensation to a particular broker-dealer might be in excess of customary commissions).
Underwriters, dealers and agents that participate
in any distribution of the offered securities may be deemed “underwriters” within the meaning of the Securities Act,
so any discounts or commissions they receive in connection with the distribution may be deemed to be underwriting compensation.
Those underwriters and agents may be entitled, under their agreements with us, to indemnification by us against certain civil liabilities,
including liabilities under the Securities Act, or to contribution by us to payments that they may be required to make in respect
of those civil liabilities. Certain of those underwriters or agents may be customers of, engage in transactions with, or perform
services for, us or our affiliates in the ordinary course of business. We will identify any underwriters or agents, and describe
their compensation, in a prospectus supplement. Any institutional investors or others that purchase offered securities directly,
and then resell the securities, may be deemed to be underwriters, and any discounts or commissions received by them from us and
any profit on the resale of the securities by them may be deemed to be underwriting discounts and commissions under the Securities
Act.
We will file a supplement to this prospectus,
if required, pursuant to Rule 424(b) under the Securities Act, if we enter into any material arrangement with a broker, dealer,
agent or underwriter for the sale of securities through a block trade, special offering, exchange distribution or secondary distribution
or a purchase by a broker or dealer. Such prospectus supplement will disclose:
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the name of any participating broker, dealer, agent or
underwriter;
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the number and type of securities involved;
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the price at which such securities were sold;
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any securities exchanges on which such securities may be
listed;
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the commissions paid or discounts or concessions allowed
to any such broker, dealer, agent or underwriter where applicable; and
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other facts material to the transaction.
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In order to facilitate
the offering of certain securities under this prospectus or an applicable prospectus supplement, certain persons participating
in the offering of those securities may engage in transactions that stabilize, maintain or otherwise affect the price of those
securities during and after the offering of those securities. Specifically, if the applicable prospectus supplement permits, the
underwriters of those securities may over-allot or otherwise create a short position in those securities for their own account
by selling more of those securities than have been sold to them by us and may elect to cover any such short position by purchasing
those securities in the open market.
In addition, the underwriters
may stabilize or maintain the price of those securities by bidding for or purchasing those securities in the open market and may
impose penalty bids, under which selling concessions allowed to syndicate members or other broker-dealers participating in the
offering are reclaimed if securities previously distributed in the offering are repurchased in connection with stabilization transactions
or otherwise. The effect of these transactions may be to stabilize or maintain the market price of the securities at a level above
that which might otherwise prevail in the open market. The imposition of a penalty bid may also affect the price of securities
to the extent that it discourages resales of the securities. No representation is made as to the magnitude or effect of any such
stabilization or other transactions. Such transactions, if commenced, may be discontinued at any time.
In order to comply
with the securities laws of certain states, if applicable, the securities must be sold in such jurisdictions only through registered
or licensed brokers or dealers. In addition, in certain states the securities may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and
is complied with.
Rule 15c6-1 under the
Securities Exchange Act of 1934 generally requires that trades in the secondary market settle in three business days, unless the
parties to any such trade expressly agree otherwise. Your prospectus supplement may provide that the original issue date for your
securities may be more than three scheduled business days after the trade date for your securities. Accordingly, in such a case,
if you wish to trade securities on any date prior to the third business day before the original issue date for your securities,
you will be required, by virtue of the fact that your securities initially are expected to settle in more than three scheduled
business days after the trade date for your securities, to make alternative settlement arrangements to prevent a failed settlement.
This prospectus, any
applicable prospectus supplement and any applicable pricing supplement in electronic format may be made available on the Internet
sites of, or through other online services maintained by, us and/or one or more of the agents and/or dealers participating in an
offering of securities, or by their affiliates. In those cases, prospective investors may be able to view offering terms online
and, depending upon the particular agent or dealer, prospective investors may be allowed to place orders online.
Other than this prospectus,
any applicable prospectus supplement and any applicable pricing supplement in electronic format, the information on our or any
agent’s or dealer’s website and any information contained in any other website maintained by any agent or dealer:
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is not part of this prospectus, any applicable prospectus
supplement and any applicable pricing supplement or the registration statement of which they form a part;
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has not been approved or endorsed by us or by any agent
or dealer in its capacity as an agent or dealer, except, in each case, with respect to the respective website maintained by such
entity; and
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should not be relied upon by investors.
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There can be no assurance
that we will sell all or any of the securities offered by this prospectus.
This prospectus may
also be used in connection with any issuance of any securities upon exercise of a warrant or a subscription right.
In addition, we may
issue the securities as a dividend or distribution or in a subscription rights offering to our existing security holders. In some
cases, we or dealers acting with us or on our behalf may also purchase securities and reoffer them to the public by one or more
of the methods described above. This prospectus may be used in connection with any offering of our securities through any of these
methods or other methods described in the applicable prospectus supplement.
LEGAL MATTERS
Unless otherwise indicated
in the applicable prospectus supplement, the validity of the securities offered hereby will be passed upon for us by Lowenstein
Sandler LLP, New York, New York. If the validity of the securities offered hereby in connection with offerings made pursuant to
this prospectus are passed upon by counsel for the underwriters, dealers or agents, if any, such counsel will be named in the prospectus
supplement relating to such offering.
EXPERTS
The consolidated
balance sheets of Matinas BioPharma Holdings, Inc. and Subsidiaries as of December 31, 2016 and 2015, and
the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the
two-year period ended December 31, 2016, have been audited by EisnerAmper LLP, independent registered
public accounting firm, as stated in their report which is incorporated herein by reference. Such financial statements have been
incorporated herein by reference in reliance on the report of such firm given upon their authority as experts in accounting and
auditing.
ADDITIONAL INFORMATION
This prospectus is
part of a Registration Statement on Form S-3 that we have filed with the SEC relating to the shares of our securities being offered
hereby. This prospectus does not contain all of the information in the Registration Statement and its exhibits. The Registration
Statement, its exhibits and the documents incorporated by reference in this prospectus and their exhibits, all contain information
that is material to the offering of the Securities hereby. Whenever a reference is made in this prospectus to any of our contracts
or other documents, the reference may not be complete. You should refer to the exhibits that are a part of the Registration Statement
in order to review a copy of the contract or documents. The Registration Statement and the exhibits are available at the SEC’s
Public Reference Room or through its Website.
We file annual, quarterly
and current reports, proxy statements and other information with the SEC. You can read and copy any materials we file with the
SEC at its Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 and at its regional offices, a list of which is
available on the Internet at
http://www.sec.gov/contact/addresses.htm
. You may obtain information on the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site at
http://www.sec.gov
that
contains reports, proxy and information statements, and other information regarding issuers, such as us, that file electronically
with the SEC. Additionally, you may access our filings with the SEC through our website at
http://www.Matinasbio.com
. The
information on our website is not part of this prospectus.
We will provide you
without charge, upon your oral or written request, with a copy of any or all reports, proxy statements and other documents we file
with the SEC, as well as any or all of the documents incorporated by reference in this prospectus or the registration statement
(other than exhibits to such documents unless such exhibits are specifically incorporated by reference into such documents). Requests
for such copies should be directed to:
Investor Relations Department
Matinas BioPharma Holdings, Inc.
1545 Route 206 South
Suite 302
Bedminster, NJ 07921
Telephone number: 908-443-1860
You should rely only
on the information in this prospectus and the additional information described above and under the heading “Incorporation
of Certain Information by Reference” below. 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 upon it. We are not making an offer to sell
these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information in this prospectus
was accurate on the date of the front cover of this prospectus only. Our business, financial condition, results of operations and
prospects may have changed since that date.
INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE
The SEC allows us to
“incorporate by reference” information that we file with it into this prospectus, which means that we can disclose
important information to you by referring you to those documents. The information incorporated by reference is an important part
of this prospectus. The information incorporated by reference is considered to be a part of this prospectus, and information that
we file later with the SEC will automatically update and supersede information contained in this prospectus and any accompanying
prospectus supplement.
We incorporate by reference
the documents listed below that we have previously filed with the SEC:
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•
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our Annual Report on Form 10-K for the fiscal year ended
December 31, 2016, filed with the SEC on March 31, 2017;
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•
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our Current Reports on Form 8-K filed with the SEC on January
19, 2017, and March 30, 2017; and
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•
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the description of our common stock contained in our Registration
Statement on Form 8-A, filed on March 1, 2017, including
any amendments thereto or reports
filed for the purposes of updating this description.
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All documents filed
by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of the initial registration statement and
prior to effectiveness of the registration statement shall be deemed to be incorporated by reference in this prospectus and to
be a apart hereof from the date of filing of such reports and documents. All reports and other documents that we file with
the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus but before the termination
of the offering of the Securities hereunder will also be considered to be incorporated by reference into this prospectus from the
date of the filing of these reports and documents, and will supersede the information herein; provided, however, that all reports
that we “furnish” to the SEC will not be considered incorporated by reference into this prospectus. We undertake to
provide without charge to each person (including any beneficial owner) who receives a copy of this prospectus, upon written or
oral request, a copy of all of the preceding documents that are incorporated by reference (other than exhibits, unless the exhibits
are specifically incorporated by reference into these documents). You may request a copy of these materials in the manner set forth
under the heading “Additional Information,” above.
Matinas BioPharma Holdings, Inc.
Up to $30,000,000
Common Stock
PROSPECTUS SUPPLEMENT
April 28, 2017
Matinas Biopharma (AMEX:MTNB)
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