By Devika Patel
Knoxville, Tenn., Dec. 2 - Micromet, Inc. increased a committed equity financing facility to $75 million from $25 million on Dec. 1, according to an 8-K filed with the Securities and Exchange Commission.
The facility was arranged with Kingsbridge Capital Ltd. and originally settled in August 2006. This new facility supersedes the original agreement.
Under the new agreement, Kingsbridge will provide up to $75 million of capital during the next three years through the purchase of newly issued Micromet shares.
Micromet said draws can be for up to the greater of 1% to 1.5% of Micromet's market capitalization at the time of the drawdown or four times the average trading volume of the company's common stock for a specified period prior to the drawdown notice, multiplied by the closing price of the common stock on the trading day prior to the drawdown notice, provided that the maximum amount of any tranche is limited to $10 million.
Pricing will be at discounts from 6% to 14% to the average market price of Micromet's stock over an eight-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 135,000 shares of common stock at an exercise price of $4.44 per share.
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 10,104,919 (exclusive shares sold on exercise of the warrant).
Micromet is a Carlsbad, Calif., biotechnology company.
| Issuer: | Micromet, Inc.
|
| Issue: | Committed equity financing facility
|
| Amount: | $75 million
|
| Term: | Three years
|
| Price: | 6% to 14% discount to average price in eight-day pricing period
|
| Warrant: | For 135,000 shares
|
| Warrant strike price: | $4.44
|
| Warrant term: | Five years
|
| Investor: | Kingsbridge Capital Ltd.
|
| Settlement date: | Dec. 1
|
| Stock symbol: | Nasdaq: MITI
|
| Stock price: | $4.05 at close Dec. 1
|
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