By Devika Patel
Knoxville, Tenn., Nov. 20 - Infinity Pharmaceuticals, Inc. announced a $75 million private placement of stock in an 8-K filed Wednesday with the Securities and Exchange Commission.
At pricing, the company sold 4 million common shares at $11.25 per share to Purdue Pharma LP and Purdue Pharmaceutical Products LP for $45 million. The investors also will buy 2 million shares and warrants for 6 million shares in a second tranche for $30 million.
Of the warrants, a portion are exercisable for 500,000 shares at $15.00 until July 1, 2010, with an exercise price that increases over time to a maximum strike price of $20.00. Some of the warrants are exercisable for 1 million shares at $20.00 until July 1, 2011, with an exercise price that increases over time to a maximum strike price of $30.00. The remainder of warrants will be exercisable for 1.5 million shares at $30.00 until July 2, 2012, with an exercise price that increases over time to a maximum strike price of $40.00.
The deal was arranged Nov. 19.
Infinity is a Cambridge, Mass., pharmaceutical company working on cancer treatments.
| Issuer: | Infinity Pharmaceuticals, Inc.
|
| Issue: | Common stock
|
| Amount: | $75 million
|
| Investors: | Purdue Pharma LP and Purdue Pharmaceutical Products LP
|
| Pricing date: | Nov. 19
|
| Stock symbol: | Nasdaq: INFI
|
| Stock price: | $5.29 at close Nov. 19
|
|
|
| First tranche
|
| Amount: | $45 million
|
| Shares: | 4 million
|
| Price: | $11.25
|
| Warrants: | No
|
| Settlement date: | Nov. 19
|
|
|
| Second tranche
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| Amount: | $30 million
|
| Shares: | 2 million
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| Warrants: | For 6 million shares
|
| Warrant expiration: | Varying, from July 1, 2010 through July 2, 2012
|
| Warrant strike price: | Varying and subject to adjustment, from $15.00 to $40.00
|
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