Offering sells units of preferreds, common stock, five-year warrants
By Devika Patel
Knoxville, Tenn., Nov. 6 - Lion Biotechnologies, Inc. took in $23.29 million through a private placement of units on Nov. 5, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced for about $23 million on Oct. 31.
The company sold 3,145,300 units of one common share and one warrant at $2.00 per unit and 17,000 units of one series A convertible preferred share and 100% warrant coverage at $1,000 per unit. The preferreds are convertible into common shares at $2.00 per share, which is a 63.5% discount to the Oct. 30 closing share price of $5.48.
The warrants are exercisable at $2.50 for five years. The strike price reflects a 54.38% discount to the Oct. 30 closing share price.
Roth Capital Partners, LLC, was the lead placement agent, and Highline Research Advisors LLC was the co-placement agent. Quogue Capital LLC was the lead investor and Perceptive Advisors LLC, venBio Select Advisor, Three Arch Opportunity Fund and Broadfin Capital LLC also participated.
The biotechnology company is based in Woodland Hills, Calif.
| Issuer: | Lion Biotechnologies, Inc.
|
| Issue: | Units of one common share and one warrant, units of one series A convertible preferred share and 100% warrant coverage
|
| Amount: | $23,290,600
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.50
|
| Agent: | Roth Capital Partners, LLC
|
| Co-placement agent: | Highline Research Advisors LLC
|
| Investors: | Quogue Capital LLC (lead), Perceptive Advisors LLC, venBio Select Advisor, Three Arch Opportunity Fund and Broadfin Capital LLC
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 5
|
| Stock symbol: | OTCBB: LBIO
|
| Stock price: | $5.48 at close Oct. 30
|
| Market capitalization: | $52.83 million
|
|
|
| Common stock units
|
| Amount: | $6,290,600
|
| Units: | 3,145,300
|
| Price: | $2.00
|
| Warrants: | One warrant per unit
|
|
|
| Preferred units
|
| Amount: | $17 million
|
| Units: | 17,000
|
| Price: | $1,000.00
|
| Conversion price: | $2.00
|
| Warrants: | 100% coverage
|
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