Deal spans two years, investor also receives 681,818 commitment shares
By Devika Patel
Knoxville, Tenn., Aug. 26 – iBio, Inc. arranged a $10 million two-year common stock purchase agreement with Aspire Capital Fund, LLC on Aug. 25, according to an 8-K filed Tuesday with the Securities and Exchange Commission. Aspire bought 1,136,354 shares for $500,000 at pricing.
Future tranches will consist of up to 150,000 common shares sold at a price equal to the lesser of the lowest sale price of the stock on the purchase date or the arithmetic average of the three lowest closing sale prices of the stock during the 10 consecutive trading days preceding the purchase date. The tranches may not exceed $500,000.
Shares may also be sold at a volume-weighted average purchase price, in which Aspire will purchase an amount of stock equal to up to 30% of the of the shares traded on the next trading day at a minimum trading price equal to the greater of 80% of the closing price of the stock on the business day preceding the purchase date or a higher price set by the company. The price per share in this case will be the lower of the closing sale price on the sale date and 97% of the volume-weighted average price of the stock traded on the purchase date.
Aspire received 681,818 shares as a commitment fee.
The biotechnology company is based in Newark, Del.
| Issuer: | iBio, Inc.
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| Issue: | Common stock purchase agreement
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| Amount: | $10 million
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| Tenor: | Two years
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| Price: | Lesser of the lowest sale price of the stock on the purchase date or the arithmetic average of the three lowest closing sale prices of the stock during the 10 consecutive trading days preceding the purchase date or the greater of 80% of the closing price of the stock on the business day preceding the purchase date or a higher price set by the company
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| Warrants: | No
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| Investor: | Aspire Capital Fund, LLC
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| Fees: | 681,818 shares
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| Pricing date: | Aug. 25
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| Settlement date: | Aug. 25 (for $500,000)
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| Stock symbol: | NYSE: IBIO
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| Stock price: | $0.44 at close Aug. 22
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| Market capitalization: | $32.13 million
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