Company sells equity at $1.35 per unit; proceeds for general purposes
By Devika Patel
Knoxville, Tenn., May 3 - Alexza Pharmaceuticals, Inc. arranged a $16.1 million registered direct offering of units, according to a prospectus supplement filed Tuesday with the Securities and Exchange Commission.
The company will sell 11,927,034 units of one common share and a warrant for 0.35 of a share at $1.35 per unit.
The whole warrants are exercisable at $1.755 for five years. The strike price is a 7.67% premium to the May 2 closing share price of $1.63.
Settlement is expected May 6.
Proceeds will be used for general corporate purposes, including clinical trial, research and development, general and administrative and manufacturing expenses.
Three institutional investors are participating in the deal, including RA Capital Management and Tavistock Life Sciences, according to a press release.
"Over the past month, we had been approached by a number of investors that wanted to invest for the purpose of strengthening Alexza's balance sheet," Derek Cole, head of investor relations and corporate communications, told Prospect News. With the funding in place, Cole said Alexza "now has the flexibility to get past certain milestones" associated with its AZ-004 drug candidate.
Alexza is a Palo Alto, Calif., pharmaceutical company.
| Issuer: | Alexza Pharmaceuticals, Inc.
|
| Issue: | Units of one common share and a warrant for 0.35 of a share
|
| Amount: | $16,101,496
|
| Units: | 11,927,034
|
| Price: | $1.35
|
| Warrants: | One warrant for 0.35 of a share per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.755
|
| Pricing date: | May 3
|
| Settlement date: | May 6
|
| Stock symbol: | Nasdaq: ALXA
|
| Stock price: | $1.63 at close May 2
|
| Market capitalization: | $90.5 million
|
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