Deal sells series B redeemable preferreds with common stock, warrants
By Devika Patel
Knoxville, Tenn., Dec. 23 - Marina Biotech, Inc. arranged a $5 million 10% series B redeemable preferred stock investment agreement with Socius CG II, Ltd., according to an 8-K filed Friday with the Securities and Exchange Commission The two-year deal priced on Dec. 22.
The preferreds will be accompanied by common stock and may be redeemed at any time.
Socius will also receive 100% warrant coverage. The two-year warrants will be exercisable at a price equal to the greater of the closing bid price of the company's stock and the book value of the stock on the trading day preceding settlement.
"In an extremely challenging economic environment, we are pleased to continue to have the necessary financial resources to advance our industry-leading science and technology," president and chief executive officer J. Michael French said in a press release. "With this additional funding, we will continue to move CEQ508 rapidly through clinical development with the goal of advancing a treatment for patients with Familial Adenomatous Polyposis quickly to the market.
"We are also having significant success in the development of microRNA-based therapeutics via both systemic and oral delivery, and we look forward to partnering our capabilities in this area.
"Additionally, the reverse stock split, approved by the shareholders at our annual meeting in July, provides the company with the authorized shares necessary to complete the placement and to execute potential future transactions with Socius or other partners as well as M&A opportunities," French said.
Marina is a biotechnology company based in Bothell, Wash.
| Issuer: | Marina Biotech, Inc.
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| Issue: | Series B redeemable preferred stock, common stock
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| Tenor: | Two years
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| Amount: | $5 million
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| Dividends: | 10%
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| Call: | At any time
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| Warrants: | 100% coverage
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| Warrant expiration: | Two years
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| Investor: | Socius CG II, Ltd.
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| Announcement date: | Dec. 23
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| Stock symbol: | Nasdaq: MRNAD
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| Stock price: | $1.21 at close Dec. 22
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| Market capitalization: | $104.34 million
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