By Devika Patel
Knoxville, Tenn., April 9 - Neurogen Corp. announced it has agreed to raise $30.6 million in a private placement of exchangeable preferred shares and warrants.
The company will sell 981,411 units of one exchangeable preferred share and one warrant. The exchangeable preferred shares will each automatically be exchanged for 26 common shares upon shareholder approval.
Each warrant is exercisable for 13 common shares at $2.30 per share.
Pacific Growth Equities, LLC is the lead agent of a syndicate that also includes Leerink Swann & Co., Oppenheimer & Co. and Merriman Curhan Ford & Co.
Proceeds will be used for clinical development of existing product candidates and other general corporate purposes. Settlement is expected in one week.
Based in Branford, Conn., Neurogen develops small molecule drugs to treat insomnia, Parkinson's disease, restless leg syndrome, pain, depression and obesity.
| Issuer: | Neurogen Corp.
|
| Issue: | Units of one exchangeable preferred share and one warrant
|
| Amount: | $30.6 million
|
| Units: | 981,411
|
| Exchange ratio: | Into 26 common shares
|
| Warrants: | One per unit, exercisable for 13 common shares
|
| Warrant strike price: | $2.30
|
| Agents: | Pacific Growth Equities, LLC (lead), Leerink Swann & Co., Oppenheimer & Co., Merriman Curhan Ford & Co.
|
| Pricing date: | April 9
|
| Stock symbol: | Nasdaq: NRGN
|
| Stock price: | $2.23 at close April 8
|
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