Stonepine Capital leads investors with Riverbank as placement agent
By Jennifer Chiou
New York, June 21 - Nile Therapeutics, Inc. announced that it entered into an agreement to privately place $2.5 million of shares with five-year warrants to purchase up to 2.5 million additional shares at $0.60 each.
According to a company release, the investment is led by Stonepine Capital, LP and includes participation from existing investors.
Riverbank Capital Securities, Inc. is the placement agent for the 5 million shares.
The strike price for the warrants is a 6.25% discount to the company's closing share price of $0.64 on Tuesday.
"We are pleased to have the support of a new, quality investor like Stonepine," chief executive officer Joshua Kazam said in the release.
"We believe these funds will enable us to operate well into 2012, beyond the full analysis of our ongoing phase 1 trial of cenderitide. The trial is enrolling ahead of schedule, and we look forward to providing an update on our timelines soon as we continue to explore options to enhance shareholder value."
Settlement is expected on June 24.
San Mateo, Calif.-based Nile is a biopharmaceutical company.
| Issuer: | Nile Therapeutics, Inc.
|
| Issue: | Stock
|
| Amount: | $2.5 million
|
| Shares: | 5 million
|
| Price: | $0.50
|
| Warrants: | For 2.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
|
| Investor: | Stonepine Capital, LP (lead)
|
| Agent: | Riverbank Capital Securities, Inc.
|
| Pricing date: | June 21
|
| Settlement date: | June 24
|
| Stock symbol: | Nasdaq: NLTX
|
| Stock price: | $0.64 at close June 21
|
| Market capitalization: | $22.55 million
|
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