Published on 11/18/2014 in the Prospect News PIPE Daily.
Capnia greenshoe exercised for $10.73 million IPO of units, warrants
Bookrunner Maxim Group sells units of one common share, two warrants
By Devika Patel
Knoxville, Tenn., Nov. 18 – Capnia, Inc. said the underwriters for its initial public offering of stock opted to exercise the deal’s $1.61 million greenshoe in part by selling another $2,475 of warrants. The underwriters may still buy $1.61 million of common shares in the next 45 days as part of the greenshoe. The deal was announced June 10 and priced for $10.73 million with the greenshoe on Nov. 13.
The company sold 1.65 million units of one common share and two warrants at $6.50 per unit on a best-efforts basis. The first warrant is exercisable at $6.50 until Nov. 12, 2019, and the second warrant is exercisable at $6.50 until Feb. 12, 2016.
Of the series A warrants, 247,500 were part of the partially exercised greenshoe. Of the series B warrants, 247,500 were part of the partially exercised greenshoe. Both series of warrants were sold at $0.01 apiece.
Maxim Group LLC is the bookrunning manager.
Proceeds will be used for the commercial launch of CoSense, working capital, capital expenditures, research and development and other general corporate purposes.
The Redwood City, Calif., company develops medical diagnostics and therapeutics. It expects its shares will trade on the Nasdaq under the symbol “CAPN.”
| Issuer: | Capnia, Inc.
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| Issue: | Units of one common share and two warrants
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| Amount: | $10,725,000
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| Greenshoe: | $1,608,750
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| Units: | 1.65 million
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| Price: | $6.50
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| Warrants: | Two warrants per unit; 1,897,500 series A warrants (including 247,500 from partially exercised greenshoe) and 1,897,500 series B warrants (including 247,500 from partially exercised greenshoe)
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| Warrant expiration: | Nov. 12, 2019 (series A), Feb. 12, 2016 (series B)
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| Warrant strike price: | $6.50
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| Bookrunner: | Maxim Group LLC
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| Co-manager: | Dawson James Securities, Inc.
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| Announcement date: | June 10
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| Pricing date: | Nov. 13
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| Settlement date: | Nov. 18 (for $10,727,475)
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| Stock symbol: | Nasdaq: CAPN
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