Deal sells convertible preferreds, warrants to Pillar Pharmaceuticals
By Devika Patel
Knoxville, Tenn., Nov. 13 - Idera Pharmaceuticals, Inc. said it settled a $7 million private placement of convertible preferred stock with Pillar Pharmaceuticals I LP. Piper Jaffray & Co. was the agent.
The company sold 424,242 preferreds. The preferreds are each convertible into 20 common shares at $0.70 per share, a 1.45% premium to the Nov. 9 closing share price of $1.55.
The investor also received warrants for 8,484,840 common shares, which are each exercisable at $0.70. The strike price is also a 1.45% premium to the Nov. 9 closing share price.
Proceeds will be used for general corporate purposes, including advancement of the company's autoimmune disease program.
"We expect that the proceeds of this financing, in combination with our current financial resources, will allow us to complete our ongoing Phase 2 study of IMO-3100 in patients with psoriasis and to conduct a phase 1 clinical trial of IMO-8400 in our lupus program," chief executive officer Sudhir Agrawal said in a press release. "We anticipate that we will have top-line data from some of the endpoints of the Phase 2 study by year end 2012."
Idera, based in Cambridge, Mass., develops targeted immune therapies based on the modulation of Toll-like receptors.
| Issuer: | Idera Pharmaceuticals, Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $7 million
|
| Preferreds: | 424,242
|
| Conversion price: | $0.70
|
| Warrants: | For 8,484,840 shares
|
| Warrant strike price: | $0.70
|
| Agent: | Piper Jaffray & Co.
|
| Investor: | Pillar Pharmaceuticals I LP
|
| Settlement date: | Nov. 13
|
| Stock symbol: | Nasdaq: IDRA
|
| Stock price: | $0.69 at close Nov. 9
|
| Market capitalization: | $23.25 million
|
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