Fully subscribed deal consists of 4 million shares sold at $2.00 each
By Devika Patel
Knoxville, Tenn., Nov. 18 - iBio, Inc. said it completed a fully subscribed private placement of stock. The company raised $6.07 million on Oct. 27 for a total of $8 million.
The company sold 3,032,500 common shares at $2.00 apiece in the first tranche and 967,500 shares in the second for $1.94 million. It sold a total of 4 million shares. The price per share is a 4.76% discount to $2.10, the Oct. 26 closing share price.
Investors also received 100% warrant coverage. Each five-year warrant is exercisable at $2.20, a 4.76% premium to the Oct. 26 closing price.
"It's always good to get these sorts of things finished," Robert Erwin, president of iBio, told Prospect News. "We have had a lot of interest."
Erwin said many interested investors were those with previous biotechnology experience, though he added that some others - including retail investors - were trying to get in on the game.
"Our trading volume has slowly increased over the last few months," he noted, opining that it was due in part to retail interest.
Erwin said the financing was part of "the normal cycle of raising money" and that proceeds would be used to "fund ongoing development and normal corporate operations.
"This is going to be plenty of money to last us for quite a while," he added, though he said that as a biotech company "we always like to stay in touch with the market" and that if a good opportunity presented itself, it would be considered.
Noble Financial Capital Markets was the agent.
The biotechnology company is based in Newark, Del.
Stephanie N. Rotondo contributed to this article
| Issuer: | iBio, Inc.
|
| Issue: | Common stock
|
| Amount: | $8 million
|
| Shares: | 4 million
|
| Price: | $2.00
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.20
|
| Agent: | Noble Financial Capital Markets
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| Settlement date: | Oct. 27 (for $6,065,000), Nov. 18 (for $1,935,000)
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| Stock symbol: | OTCBB: IBPM
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| Stock price: | $2.16 at close Oct. 27
|
| Market capitalization: | $84.82 million
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