By Sheri Kasprzak
New York, Feb. 1 - NeoRx Corp. said it has received definitive agreements for a $65.03 million private placement and also received a $3.5 million bridge loan.
A group of institutional and other investors agreed to buy 92.9 million at $0.70 each.
The investors will receive warrants for 25.4 million shares, exercisable at $0.77 each for five years.
NeoRx also received a bridge loan for $3.5 million. The 8% loan matures May 31, 2006 and is convertible into 5 million common shares at $0.70 each.
The investors received warrants for 2.5 million shares, exercisable at $0.77 each for five years.
Also on Wednesday, the holders of all of NeoRx's outstanding series B convertible preferred stock agreed to convert their shares into 9.5 million common shares.
MTM Capital, Bay City Capital, Deerfield Management Co., Abingworth and T. Rowe Price were all investors in the offering.
Proceeds will be used for the development of the company's lead product candidate, picoplatin, a treatment for tumors.
Seattle-based NeoRx develops treatments for cancer.
Stock
| Issuer: | NeoRx Corp.
|
| Issue: | Stock
|
| Amount: | $65.03 million
|
| Shares: | 92.9 million
|
| Price: | $0.70
|
| Warrants: | For 25.4 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.77
|
| Investors: | MTM Capital, Bay City Capital, Deerfield Management Co., Abingworth and T. Rowe Price
|
| Announcement date: | Feb. 1
|
| Stock symbol: | Nasdaq: NERX
|
| Stock price: | $0.81 at close Feb. 1
|
|
|
| Bridge loan
|
| Issuer: | NeoRx Corp.
|
| Issue: | Bridge loan
|
| Amount: | $3.5 million
|
| Maturity: | May 31, 2006
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.70
|
| Conversion ratio: | Into 5 million shares
|
| Warrants: | For 2.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.77
|
| Investors: | MTM Capital, Bay City Capital, Deerfield Management Co., Abingworth and T. Rowe Price
|
| Announcement date: | Feb. 1
|
| Stock symbol: | Nasdaq: NERX
|
| Stock price: | $0.81 at close Feb. 1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
