Arena Pharmaceuticals preferred holder exercises call option for warrants

Tampa, Fla., March 20 - Arena Pharmaceuticals, Inc. said one of the investors owning its series B preferred stock has required the company to issue a call notice for warrants to purchase 829,586 shares of common stock.

Unless the warrants are exercised by March 31, Arena will be required to issue new exchange warrants for the warrants that are called. The new warrants will be for the same number of shares and will have an exercise price of 130% of the arithmetic average of the volume weighted average prices of Arena's stock for the five trading days before the cancellation date for the old warrants.

Investors and the company have the right to require calls if its stock trades at 140% or more of the exercise price for 30 consecutive trading days.

In total, holders of the series B preferreds own warrants for 1,936,200 shares of common stock at an exercise price of $10.00 per share.

San Diego-based Arena Pharmaceuticals, a clinical-stage biopharmaceutical company, develops drugs in the therapeutic areas of metabolic, cardiovascular, inflammatory and central nervous system diseases.

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