By Sheri Kasprzak
New York, April 19 - Discovery Laboratories, Inc. said it obtained a $50 million committed equity financing facility from Kingsbridge Capital Ltd.
Kingsbridge will buy shares of Discovery over three years at a minimum price equal to the higher of $2.00 or 85% of the volume-weighted average price for the day before an eight-day pricing period. For each day during the trading period, if the minimums are met, Kingsbridge may buy shares of Discovery at discounts ranging from 6% to 10%.
There is a limit on each tranche of the financing equal to the lesser of $10 million or 2.5% of Discovery's market capitalization at the time of a draw.
Also, Kingsbridge received warrants for 490,000 shares, exercisable at $5.6186 each, a 30% premium over the average closing bid price for the five trading days before the agreement was signed, for five years.
Based in Warrington, Pa., Discovery is a biotechnology company focused on surfactant replacement therapies for respiratory diseases.
| Issuer: | Discovery Laboratories, Inc.
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| Issue: | Committed equity financing facility
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| Amount: | $50 million
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| Tenor: | Three years
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| Price: | 6% to 10% discount to market price over an eight-day pricing period
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| Warrants: | For 490,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $5.6186
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| Investor: | Kingsbridge Capital Ltd.
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| Settlement date: | April 19
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| Stock symbol: | Nasdaq: DSCO
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| Stock price: | $4.28 at close April 19
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