Offering includes warrant coverage; Roth Capital Partners is the agent
By Devika Patel
Knoxville, Tenn., Feb. 19 - Desert Gateway Inc. gave further details about a $9.18 million private placement of stock in an 8-K filed Tuesday with the Securities and Exchange Commission. Roth Capital Partners, LLC was the agent for the deal, which was announced as a $10 million sale on Feb. 12. The offer priced on Feb. 12 and settled Feb. 14.
The company sold 3,061,110 common shares at $3.00 per share, which is a 6.25% discount to the Feb. 11 closing share price of $3.20.
The investors also received warrants for 1,530,559 shares. Each warrant is exercisable at $3.60 for five years. The strike price is a 12.5% premium to the Feb. 11 closing price.
The company intends to invest the proceeds to advance its pipeline of rare-disease drug candidates, including its lead compound, RE-021, for focal segmental glomerulosclerosis.
The biopharmaceutical company is based in New York.
| Issuer: | Desert Gateway Inc.
|
| Issue: | Common shares
|
| Amount: | $9,183,330
|
| Shares: | 3,061,110
|
| Price: | $3.00
|
| Warrants: | For 1,530,559 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.60
|
| Agent: | Roth Capital Partners, LLC
|
| Pricing date | Feb. 12
|
| Settlement date: | Feb. 14
|
| Stock symbol: | OTCBB: RTRX
|
| Stock price: | $3.20 at close Feb. 11
|
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