By E. Janene Geiss
Philadelphia, Aug. 31 - Micromet, Inc. announced Thursday that it has entered into a committed equity financing facility with Kingsbridge Capital Ltd., a private investment group.
Under the agreement, Kingsbridge will provide up to $25 million of capital during the next three years through the purchase of newly issued Micromet shares, according to a company news release. Micromet will determine the timing and amount of any financings.
The company said the facility allows it to supplement its cash reserves if and when it determines the terms are favorable and minimally dilutive to shareholders.
Micromet said draws can be for up to the lesser of $5 million or 1% to 1.5% of Micromet's market capitalization at the time of the draw.
Pricing will be at discounts from 6% to 14% to the average market price of Micromet's stock over an 8-day pricing period. If the average market price on any day during the pricing period is less than the greater of $2.00 or 85% of the closing price of the day preceding the first day of the pricing period, then that day will be excluded from the calculation and the size of the draw decreased by one-eighth.
In connection with the financing, Micromet said it issued a warrant to Kingsbridge to purchase up to 285,000 shares of common stock at an exercise price of $3.2145 per share, which represents a 25% premium over the average of the closing prices of Micromet's common stock during the five trading days immediately preceding the signing of the agreement.
The warrant will become exercisable after six months and will remain exercisable for five years after that.
The maximum number of shares that Micromet can sell to Kingsbridge under the financing is 6,251,193 (exclusive shares sold on exercise of the warrant).
The company has two product candidates for cancer in clinical development and an early-stage pipeline that it intends to advance into the clinic.
MT201 (adecatumumab) is a human antibody currently being tested as a monoagent in two phase 2 trials in prostate cancer and in metastatic breast cancer. MT201 is being developed in collaboration with Serono.
MT103 (MEDI-538), a BiTE compound currently in a phase 1 clinical trial in non-Hodgkins lymphoma in Europe. Micromet's partner MedImmune has recently submitted an Investigational New Drug application to the Food and Drug Administration to initiate trials in the United States.
Micromet is a Carlsbad, Calif., biotechnology company.
| Issuer: | Micromet, Inc.
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| Issue: | Committed equity financing facility
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| Amount: | $25 million
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| Term: | 3 years
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| Price: | 6% to 14% discount to average price in 8-day pricing period
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| Warrant: | For 285,000 shares
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| Warrant strike price: | $3.2145
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| Warrant term: | 5 years
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| Investor: | Kingsbridge Capital Ltd.
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| Announcement date: | Aug. 31
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| Stock symbol: | Nasdaq: MITI
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| Stock price: | $2.55 at close Aug. 30
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