Published on 5/28/2010 in the Prospect News PIPE Daily.
New Issue: LaJolla Pharmaceuticals seals $6 million placement of preferreds, stock
By Devika Patel
Knoxville, Tenn., May 28 - LaJolla Pharmaceuticals Co. settled a $6 million private placement of its 15% series C-1 convertible preferred stock and common stock on Wednesday, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold 5,134 preferreds at $1,000 apiece and 28,970,435 common shares at $0.03 per share. The preferreds are initially convertible into common stock at a rate of 66,667 shares per preferred.
Investors also received warrants for 10,268 units, exercisable at $1,000 per unit, that each consist of one 15% series C-2 preferred and an additional warrant for one series D-2 preferred.
The investors also received warrants to purchase 5,134 shares of series D-1 preferred stock at an exercise price of $1,000 per share.
All of the warrants are exercisable for three years.
Based in San Diego, LaJolla is a biotechnology company focused on developing therapeutics for antibody-mediated autoimmune diseases.
Issuer: | LaJolla Pharmaceuticals Co.
|
Issue: | Series C-1 convertible preferred stock, common stock
|
Amount: | $6,003,113
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Warrants: | For 5,134 series D-1 preferreds, for 10,268 units of one 15% series C-2 preferred and an additional warrant for one series D-2 preferred
|
Warrant expiration: | Three years
|
Warrant strike price: | $1,000 (per unit)
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Settlement date: | May 26
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Stock symbol: | Pink Sheets: LJPC
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Stock price: | $0.06 at close May 24
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Market capitalization: | $3.61 million
|
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Series C-1 preferreds
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Amount: | $5,134,000
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Preferreds: | 5,134
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Price: | $1,000
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Dividends: | 15%
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Conversion rate: | 66,667 shares per preferred
|
|
Common stock
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Amount: | $869,113
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Shares: | 28,970,435
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Price: | $0.03
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