By Sheri Kasprzak
Atlanta, April 8 - Curon Medical Inc. said it has completed the $3,225,699 first tranche of an overall $11,325,699 private placement.
The company sold 4,962,614 shares at $0.65 each in the first closing. The pricing represents a 19% discount to the company's stock price on April 7.
The investors also received warrants for 2,481,298 shares exercisable at $1.00 each for five years.
The remaining $8.1 million portion of the deal has been deposited in escrow and will be released to Curon upon shareholder approval. The company will seek the shareholders' approval at its meeting next month. The terms of the second closing include 12,461,538 shares at C$0.65 each.
SVB Alliant and The Robins Group LLC were the placement agents.
Based in Fremont, Calif., Curon develops treatments for digestive disorders. The proceeds will be used to fund the company's initiatives for the use of radiofrequency energy to treat acid reflux. The remainder will be used for working capital.
| Issuer: | Curon Medical Inc.
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| Issue: | Stock
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| Amount: | $11,325,699
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| Shares: | 17,424,152
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| Price: | $0.65
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| Warrants: | For 2,481,298 shares (in first closing)
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.00
|
| Placement agents: | SVB Alliant and The Robins Group LLC
|
| Settlement date: | April 8
|
| Stock price: | $0.75 at close April 8
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