Deal sells common shares at $2.55 per share with four types of warrant
By Devika Patel
Knoxville, Tenn., Nov. 3 – NephroGenex, Inc. said it will raise $5.5 million in private placement of stock. Rodman & Renshaw is the agent.
The company will sell 2,156,863 common shares at $2.55 per share. The price per share is a 28.17% discount to the Nov. 2 closing share price of $3.55.
Investors also will receive warrants for 8,088,236 shares, each exercisable at $3.56, which is a 0.28% premium to the Nov. 2 closing share price.
The series A warrants are exercisable for 1,617,647 shares for five years, the series B warrants are exercisable for 2,156,863 shares for one year, the series C warrants are exercisable for 2,156,863 shares for 18 months and the series D warrants are exercisable for 2,156,863 shares for eight months.
Settlement is expected Nov. 6.
Proceeds will be used for working capital purposes.
The Raleigh, N.C., pharmaceutical company develops therapeutics to treat kidney disease.
| Issuer: | NephroGenex, Inc.
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| Issue: | Common stock
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| Amount: | $5.5 million
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| Shares: | 2,156,863
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| Price: | $2.55
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| Warrants: | For 8,088,236 shares
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| Warrant expiration: | Five years (for 1,617,647 shares), one year (for 2,156,863 shares), 18 months (for 2,156,863 shares), eight months (for 2,156,863 shares)
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| Warrant strike price: | $3.56
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| Agent: | Rodman & Renshaw
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| Pricing date: | Nov. 3
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| Settlement date: | Nov. 6
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| Stock symbol: | Nasdaq: NRX
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| Stock price: | $3.55 at close Nov. 2
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| Market capitalization: | $29.43 million
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