By Devika Patel
Knoxville, Tenn., July 8 - Hemispherx Biopharma, Inc. arranged a $30 million equity line with Fusion Capital Fund II, LLC on July 2, according to an 8-K filed with the Securities and Exchange Commission Tuesday.
Fusion will buy up to $30 million of the company's common shares from time to time in tranches of $120,000 to $1 million over a 25-month period.
The purchase price of the shares will be based on the prevailing market prices of the company's shares at the time of each sale, without any fixed discount.
Specifically, for blocks over $120,000, Fusion will pay the lower of the lowest sale price of the company's stock on the sale date and the lowest price at which it bought stock during the previous 10 business days before the notice was received by Fusion. For smaller amounts, the price is the lower of the lowest sale price of the company's stock on the sale date and the average of the three lowest closing prices during the 12 business days ending immediately before the purchase date.
Fusion Capital may not buy shares on any business day that the price of the company's common stock is below $0.40.
Proceeds will be used to fund infrastructure growth including manufacturing, regulatory compliance and market development, as well as to prospectively fund market opportunities and strategic partnerships.
Philadelphia-based Hemispherx develops drugs to treat debilitating disorders, like viral diseases and immune-system disorders.
| Issuer: | Hemispherx Biopharma, Inc.
|
| Issue: | Equity line
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| Amount: | $30 million
|
| Tenor: | 25 months
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| Warrants: | No
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| Investor: | Fusion Capital Fund II, LLC
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| Pricing date: | July 2
|
| Stock symbol: | Amex: HEB
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| Stock price: | $0.78 at close July 2
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