Offering sells 17.5 million units of one common share and one warrant
By Devika Patel
Knoxville, Tenn., May 2 - Idera Pharmaceuticals, Inc. priced a public offering of units to raise $8.75 million, according to a prospectus filed Thursday with the Securities and Exchange Commission. Piper Jaffray & Co. is the underwriter.
The company will sell 17.5 million units of one common share and one warrant at $0.50 per unit.
The five-year warrants are each exercisable at $0.47, a 32.86% discount to the May 1 closing share price of $0.70.
In addition, investors who buy units that might result in ownership of greater than 9.9% of the company's stock will be offered pre-funded warrants to purchase up to 15,816,327 shares. Each pre-funded warrant will be exercisable at $0.01 for seven years.
Pillar Pharmaceuticals I, LP and Pillar Pharmaceuticals II, LP may invest $2.5 million.
Settlement is expected May 7.
Idera, based in Cambridge, Mass., develops targeted immune therapies based on the modulation of Toll-like receptors.
| Issuer: | Idera Pharmaceuticals, Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $8.75 million
|
| Units: | 17.5 million
|
| Price: | $0.50
|
| Warrants: | One warrant per unit, plus pre-funded warrants for 15,816,327 shares
|
| Warrant expiration: | Five years, seven years
|
| Warrant strike price: | $0.47, $0.01
|
| Underwriter: | Piper Jaffray & Co.
|
| Investors: | Pillar Pharmaceuticals I, LP and Pillar Pharmaceuticals II, LP (for $2.5 million)
|
| Pricing date: | May 2
|
| Settlement date: | May 7
|
| Stock symbol: | Nasdaq: IDRA
|
| Stock price: | $0.70 at close May 1
|
| Market capitalization: | $14.6 million
|
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