By Sheri Kasprzak
Atlanta, May 2 - Immunomedics Inc. said it has closed an upsized private placement for $37,675,000.
The company sold senior convertible notes to institutional investors.
The notes bear interest at 5% annually, mature in three years and are convertible into common shares at $2.62 each.
If a note is converted or cancelled before maturity, the holder will be paid interest that would have been earned during the three-year term on the date of conversion or cancellation.
The investors also received warrants for 76.39 common shares for every $1,000 in principal of notes purchased. The warrants are exercisable at $2.98 each for three years.
The warrants may be exercised only if the company's shareholders approve a 40 million share increase to its common stock. Those shares would include the 8.35 million shares needed for conversion and the exercise of the warrants.
The investors will also have an option to buy up to 20% in additional principal of the notes and warrants for 120 days after closing.
The offering was first announced April 27 as a $36 million deal under the same terms.
Lazard Freres & Co. LLC was the lead placement agent, and C.E. Unterberg, Towbin was the co-placement agent.
Based in Morris Plains, N.J., Immunomedics is a biopharmaceutical company focused on the development of monoclonal, antibody-based treatments for cancer, autoimmune and other diseases.
| Issuer: | Immunomedics Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $37,675,000
|
| Maturity: | Three years
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion price: | $2.62
|
| Warrants: | For 76.39 shares for each $1,000 in principal purchased
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.98
|
| Greenshoe: | For up to 20% of the principal and warrants purchased
|
| Greenshoe expiration: | 120 days after closing
|
| Placement agent: | Lazard Freres & Co. LLC (lead); C.E. Unterberg, Towbin
|
| Announcement date: | April 27
|
| Settlement date: | April 29
|
| Stock price: | $2.16 at close April 29
|
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