Deal sells convertible preferreds and warrants for 53,846,000 shares
By Devika Patel
Knoxville, Tenn., March 10 – Hansen Medical, Inc. said it plans a $35 million private placement of convertible preferred stock.
The company will sell 53,846 preferreds at $650.00 apiece. The preferreds are each convertible into common stock at a price equal to the lesser of $0.65 or the per-share trailing weighted average share price for the 10 trading days preceding conversion.
The investors also will receive warrants for 53,846,000 common shares, which are each exercisable at $0.975 for two years. The strike price is a 20.37% premium to the March 9 closing share price of $0.81.
Investors include Jack W. Schuler, Oracle Investment Management, Westwood Management and Fred Moll.
Settlement is expected Wednesday.
Proceeds will be used for commercialization efforts and operations.
The Mountain View, Calif.-based company develops and manufactures robotics designed to position, manipulate and control catheter technologies.
| Issuer: | Hansen Medical, Inc.
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| Issue: | Convertible preferred stock
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| Amount: | $35 million
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| Preferreds: | 53,846
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| Price: | $650.00
|
| Conversion price: | The lesser of $0.65 or the per-share trailing weighted average share price for the 10 trading days preceding conversion
|
| Warrants: | For 53,846,000 shares
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| Warrant expiration: | Two years
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| Warrant strike price: | $0.975
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| Investors: | Jack W. Schuler, Oracle Investment Management, Westwood Management and Fred Moll
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| Pricing date: | March 10
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| Settlement date: | March 11
|
| Stock symbol: | Nasdaq: HNSN
|
| Stock price: | $0.81 at close March 9
|
| Market capitalization: | $103.71 million
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