By Laura Lutz
Des Moines, Oct. 12 - Dendreon Corp. arranged a committed equity financing under which it may sell up to $130 million of its stock to Azimuth Opportunity, Ltd.
The financing has a term of 18 months, and Dendreon is not required to use any of the $130 million.
The number of shares Dendreon may sell is capped at one less than 20% of its outstanding share capital as of Oct. 11. Each draw will be capped at the lesser of $55 million and 2.5% of Dendreon's market capitalization at the time.
Each drawdown will be conducted over 10 consecutive trading days or another trading period agreed upon by Dendreon and Azimuth.
After it is presented with a draw notice, Azimuth will be required to buy a pro-rata portion of the shares for each trading day during the trading period on which the daily volume-weighted average price of the company's stock exceeds a threshold price. Dendreon will determine the threshold price for each drawdown.
Azimuth may choose to buy the pro-rata portion of the shares for any day that Dendreon's stock does not meet the threshold price, but it will not be required to.
For each share, Azimuth will pay the daily volume weighted average price of Dendreon stock on the purchase day, less a discount ranging from 3% to 5% based on Dendreon's market capitalization.
Azimuth may also be granted call options to buy additional shares during each drawdown period under similar pricing terms.
Reedland Capital Partners will act as placement agent.
Dendreon, a Seattle-based biotechnology company, said the proceeds of the deal will be used to develop the commercialization and manufacturing of its prostate cancer drug Provenge, to research other products and to fund general purposes.
| Issuer: | Dendreon Corp.
|
| Issue: | Committed equity financing
|
| Amount: | $130 million
|
| Tenor: | 18 months
|
| Price: | Discount of 3% to 5% off daily volume weighted average price of stock on day of purchase
|
| Warrants: | No
|
| Agent: | Reedland Capital Partners
|
| Investor: | Azimuth Opportunity, Ltd.
|
| Settlement date: | Oct. 11
|
| Stock symbol: | Nasdaq: DNDN
|
| Stock price: | $8.02 at close Oct. 11
|
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