Company sells common stock at $0.07, series F convertible preferreds
By Devika Patel
Knoxville, Tenn., Sept. 25 - La Jolla Pharmaceutical Co. arranged a $10 million private placement of stock and series F convertible preferred stock on Sept. 24, according to an 8-K filed Wednesday with the Securities and Exchange Commission. MTS Securities, LLC is the agent.
The company will sell about 96,431,000 common shares at $0.07 per share and about 3,250 preferreds at $1,000 per preferred.
Each preferred is convertible into common shares at $0.07 per share.
The price per share and conversion price are a 22.22% discount to the Sept. 23 closing share price of $0.09.
Settlement is expected on Sept. 27.
Proceeds will be used to complete the company's ongoing phase 2 clinical study of patients with chronic kidney disease and a planned phase 1 proof-of-concept clinical study of LJPC-501 in hepatorenal syndrome.
La Jolla Pharmaceutical is a San Diego-based biotechnology company.
| Issuer: | La Jolla Pharmaceutical Co.
|
| Issue: | Common stock, series F convertible preferred stock
|
| Amount: | $10 million
|
| Warrants: | No
|
| Agent: | MTS Securities, LLC
|
| Pricing date: | Sept. 24
|
| Settlement date: | Sept. 27
|
| Stock symbol: | OTCBB: LJPC
|
| Stock price: | $0.09 at close Sept. 23
|
| Market capitalization: | $2.62 million
|
|
|
| Common stock
|
| Shares: | 96,431,000 (approximate)
|
| Price: | $0.07
|
|
|
| Preferreds
|
| Preferreds: | 3,250 (approximate)
|
| Price: | $1,000
|
| Conversion price: | $0.07
|
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