Deal sells units of one share and 0.75 warrants at $5.44375 per unit
By Devika Patel
Knoxville, Tenn., June 29 – Argos Therapeutics, Inc. said it settled a $29.83 million second tranche of a $60 million private placement of units. The deal priced on March 4 and raised $19.88 million on March 9.
The company is selling units of one common share and 0.75 warrants at $5.44375 per unit in up to three tranches.
The warrants are each exercisable at $5.35 for five years. The strike price is identical to the March 3 closing share price.
In the first tranche, which settled on March 9, Argos sold 3,652,430 units for $19,882,916. It sold 5,478,672 units in the second tranche for $29,824,521. The $10,292,563 third tranche, expected to settle on Feb. 28, 2017, will sell units at a price per share equal to the lesser of $5.35 and the fair market value of the stock at settlement, with a floor price of $1.50 per share.
Investors will include Pharmstandard International SA, Forargos BV, Tianyi Lummy International Holdings Group Ltd., China BioPharma Capital I, LP, TVM V Life Science Ventures GmbH & Co. KG and Wasatch Funds Trust, Alexey Vinogradov, Andrei Petrov, Hubert Birner and Sander van Deventer.
Proceeds will be used for ongoing expenses into the third quarter of 2016 and possibly into the second quarter of 2017, based on the company’s current operating plan. Under the company’s plan, it also hopes to refinance its venture loan facility with Horizon Technology Finance Corp. and Fortress Credit Co LLC and negotiate collaborations for the development, marketing and distribution of AGS-003 outside North America and of other product candidates, including AGS-004.
The biopharmaceutical company is based in Durham, N.C.
| Issuer: | Argos Therapeutics, Inc.
|
| Issue: | Units of one common share and 0.75 warrants
|
| Amount: | $60 million
|
| Price: | $5.44375
|
| Warrants: | 0.75 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.35
|
| Investors: | Pharmstandard International SA, Forargos BV, Tianyi Lummy International Holdings Group Ltd., China BioPharma Capital I, LP, TVM V Life Science Ventures GmbH & Co. KG and Wasatch Funds Trust, Alexey Vinogradov, Andrei Petrov, Hubert Birner and Sander van Deventer
|
| Pricing date: | March 4
|
| Settlement dates: March 9 (for $19,882,916), June 29 (for $29,824,521), Feb. 28, 2017 (for $10,292,563)
|
| Stock symbol: | OTCBB: ARGS
|
| Stock price: | $5.35 at close March 3
|
| Market capitalization: | $143.57 million
|
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