Deal with Lincoln Park Capital Fund is to span 30 months, company says
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Oct. 17 - Marina Biotech, Inc. arranged a $15 million stock purchase agreement with Lincoln Park Capital Fund, LLC on Oct. 11, according to an 8-K filed Monday with the Securities and Exchange Commission. The agreement contemplates selling up to 17,779,127 company common shares to Lincoln Park over 30 months.
The purchase price for the shares will be set so that the average purchase price of all shares sold equals or exceeds $0.225 per share.
"We've known management for awhile," said Rick Vogel, president of Lincoln Park in an interview with Prospect News. He added that the firm "likes the potential of the RNAi space.
"We just feel things are going to pick up from an industry perspective," he said. "We like the efforts they have made. Management is focused and will continue to show progress in their approaches." Lincoln Park received 1,452,785 shares as a commitment fee and will receive an additional 2,905,569 shares as it completes the $15 million agreement.
Proceeds will be used for the clinical development of CEQ508, which is currently in a phase 1b/2a clinical trial for the treatment of Familial Adenomatous Polyposis, and for general corporate purposes, including working capital, operational purposes and pre-clinical development.
Marina is a biotechnology company based in Bothell, Wash.
| Issuer: | Marina Biotech, Inc.
|
| Issue: | Stock purchase agreement
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| Amount: | $15 million
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| Tenor: | 30 months
|
| Price: | No fixed discount
|
| Warrants: | No
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| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | 4,358,354 shares
|
| Pricing date: | Oct. 11
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| Stock symbol: | Nasdaq: MRNA
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| Stock price: | $0.15 at close Oct. 11
|
| Market capitalization: | $14.56 million
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