By Laura Lutz
Des Moines, June 18 - Lexicon Pharmaceuticals, Inc. upsized the first tranche of its previously announced private placement of stock to about $205 million from $154.35 million.
Invus Group, LLC agreed to buy the shares as part of its plan to transition into an integrated biopharmaceutical company.
In this closing, Invus will purchase 50,800,000 shares at a weighted average purchase price of about $4.04 each.
Lexicon stockholders, including Invus, have the option to buy up to $345 million in additional shares over the next four years.
The investor will also receive warrants for 16.5 million shares, exercisable at $3.09 each.
The offering will bring Invus' ownership of Lexicon to 40% of the post-transaction outstanding common stock.
The deal was approved at a stockholders meeting on Thursday.
In connection with the offering, Lexicon announced plans to enter into a $60 million product-development collaboration with Symphony Capital Partners, LP. The plan will help move Lexicon's first three drug candidates into advanced clinical development. Those candidates include LX6171 for cognitive disorders, LX1031 for irritable bowel syndrome and LX1032 for gastrointestinal disorders.
Based in the Woodlands, Texas, Lexicon develops treatments for human diseases.
| Issuer: | Lexicon Pharmaceuticals, Inc.
|
| Issue: | Stock
|
| Amount: | $205 million (approximate)
|
| Shares: | 50,800,000
|
| Price: | $4.04 (average)
|
| Warrants: | For 16.5 million shares
|
| Warrant strike price: | $3.09
|
| Investor: | Invus Group, LLC
|
| Announcement date: | June 18
|
| Upsized: | Aug. 23
|
| Stock symbol: | Nasdaq: LXRX
|
| Stock price: | $3.08 at close June 15
|
| Stock price: | $3.20 at close Aug. 23
|
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