<SEC-DOCUMENT>0001144204-16-119777.txt : 20160816
<SEC-HEADER>0001144204-16-119777.hdr.sgml : 20160816
<ACCEPTANCE-DATETIME>20160816161611
ACCESSION NUMBER:		0001144204-16-119777
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160816
DATE AS OF CHANGE:		20160816

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AYTU BIOSCIENCE, INC
		CENTRAL INDEX KEY:			0001385818
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				470883144
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-209874
		FILM NUMBER:		161836219

	BUSINESS ADDRESS:	
		STREET 1:		373 INVERNESS PARKWAY
		STREET 2:		SUITE 200
		CITY:			ENGLEWOOD
		STATE:			CO
		ZIP:			80112
		BUSINESS PHONE:		(720) 437-6580

	MAIL ADDRESS:	
		STREET 1:		373 INVERNESS PARKWAY
		STREET 2:		SUITE 200
		CITY:			ENGLEWOOD
		STATE:			CO
		ZIP:			80112

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AYTU BIOSCIENCE, INC.
		DATE OF NAME CHANGE:	20150609

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Rosewind CORP
		DATE OF NAME CHANGE:	20070110
</SEC-HEADER>
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<TYPE>424B3
<SEQUENCE>1
<FILENAME>v447085_424b3.htm
<DESCRIPTION>424B3
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prospectus Supplement filed pursuant to Rule 424(b)(3)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">in connection with Registration Statement No. 333-209874</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Aytu BioScience, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Prospectus Supplement No. 3 dated August
16, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(to Prospectus dated March 11, 2016)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">8,146,169 shares of common stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#9;This Prospectus Supplement No. 3 updates,
amends, and supplements the information previously included in the Prospectus Supplement No. 2 dated July 22, 2016, Prospectus
Supplement No. 1 dated May 11, 2016 and our prospectus dated March 11, 2016, which we refer to as our prospectus, relating to the
offer for sale of an aggregate of 8,146,169 shares of common stock, $0.0001 par value per share, of Aytu BioScience, Inc., which
we refer to herein as our common stock, by the selling shareholders named therein. The number of shares covered by this Prospectus
Supplement No. 3 does not give effect to the 1-for-12 stock split effected on June 30, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 27, 2016, Aytu entered into a purchase
agreement (the &ldquo;Purchase Agreement&rdquo;), together with a registration rights agreement (the &ldquo;Registration Rights
Agreement&rdquo;), with Lincoln Park Capital Fund, LLC (&ldquo;Lincoln Park&rdquo;), an Illinois limited liability company. Upon
signing the Purchase Agreement, Lincoln Park agreed to purchase 133,690 shares of our common stock for $500,000 as an initial purchase
under the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the terms and subject to the conditions
of the Purchase Agreement, Aytu has the right to sell to and Lincoln Park is obligated to purchase up to an additional $10.0 million
in amounts of shares, as described below, of Aytu&rsquo;s common stock (&ldquo;Common Stock&rdquo;), subject to certain limitations,
from time to time, over the 36-month period commencing on the date that a registration statement, which Aytu agreed to file with
the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) pursuant to the Registration Rights Agreement, is declared effective
by the SEC and a final prospectus in connection therewith is filed. Aytu may direct Lincoln Park, at its sole discretion and subject
to certain conditions, to purchase up to 10,000 shares of Common Stock on any business day (such purchases, &ldquo;Regular Purchases&rdquo;),
provided that at least one business day has passed since the most recent purchase, and provided that the amount Aytu may sell to
Lincoln Park under a single Regular Purchase may increase under certain circumstances as described in the Purchase Agreement but
in no event will the amount of a single Regular Purchase exceed $500,000. The purchase price of shares of Common Stock related
to the future funding will be based on the prevailing market prices of such shares at the time of sales. In addition, Aytu may
direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a Regular Purchase the closing sale
price of the Common Stock is not below the threshold price as set forth in the Purchase Agreement. Aytu&rsquo;s sales of shares
of Common Stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result
in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 4.99% of the then outstanding
shares of Common Stock which amount may be increased to an amount not more than 9.99% of the then outstanding shares of Common
Stock by written notice to us by Lincoln Park, effective 61 days after delivery of such notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Agreement and the Registration
Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions,
indemnification rights and obligations of the parties. Aytu has the right to terminate the Purchase Agreement at any time, at no
cost or penalty. Actual sales of shares of Common Stock to Lincoln Park under the Purchase Agreement will depend on a variety of
factors to be determined by us from time to time, including, among others, market conditions, the trading price of the Common Stock
and determinations by Aytu as to the appropriate sources of funding for Aytu and their operations. Lincoln Park has no right to
require any sales by Aytu, but is obligated to make purchases from Aytu as it directs in accordance with the Purchase Agreement.
Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of
Aytu&rsquo;s shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The net proceeds under the Purchase Agreement
to Aytu will depend on the frequency and prices at which Aytu sells shares of Aytu&rsquo;s stock to Lincoln Park. Aytu expects
that any proceeds received by Aytu from such sales to Lincoln Park under the Purchase Agreement will be used for general corporate
purposes and working capital requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&#9;In connection with the Purchase
Agreement, Aytu issued as a commitment fee to Lincoln Park 52,500 shares of Common Stock. Lincoln Park represented to Aytu, among
other things, that it was an &ldquo;accredited investor&rdquo; (as such term is defined in Rule 501(a) of Regulation D under the
Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;)), and Aytu sold the securities in reliance upon an exemption
from registration contained in Section 4(2) under the Securities Act. The securities sold may not be offered or sold in the United
States absent registration or an applicable exemption from registration requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Joseph Gunnar &amp; Co., LLC (&ldquo;Joseph
Gunnar&rdquo;) and Fordham Financial Management, Inc. (&ldquo;Fordham&rdquo;) acted as Financial Advisor on Aytu&rsquo;s behalf.
Upon the execution of the Purchase Agreement, Aytu paid $50,000 to Joseph Gunnar and $50,000 to Fordham. Upon the earlier of six
months from the execution of the Purchase Agreement or upon the effectiveness of the resale registration statement to be filed
pursuant to the Registration Rights Agreement, Aytu will pay an additional $50,000 to Joseph Gunnar and $50,000 to Fordham.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Prospectus Supplement No. 3 is not
complete without, and may not be delivered or used except in connection with, our prospectus, including all amendments and supplements
thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">___________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Investing in our common stock involves
a high degree of risk. See &ldquo;Risk Factors&rdquo; beginning on page 6 of the original prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Neither the SEC nor any state securities
commission has approved or disapproved our securities or determined that this prospectus is truthful or complete. It is illegal
for anyone to tell you otherwise.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this Prospectus Supplement No.
3 is August 16, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



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