Units consist of series A convertible preferreds, five-year warrants
By Devika Patel
Knoxville, Tenn., Sept. 26 - NuPathe Inc. said it will raise $28 million in a private placement of units.
The company will sell 14 million units of 1/1,000th of an 8% series A convertible preferred share and a five-year warrant at $2.00 per unit.
Each 1/1,000th of a preferred share is convertible into one common share.
The warrants are each exercisable at $2.00 for five years, which is a 53.92% discount to the Sept. 25 closing share price of $4.34.
"We believe this financing, combined with the cost containment measures we expect to implement, will provide the financial resources necessary to fund our operations for approximately one year and, importantly, to obtain approval for NP101," chief executive officer Armando Anido said in a press release.
NuPathe is a specialty pharmaceutical company based in Conshohocken, Pa.
| Issuer: | NuPathe Inc.
|
| Issue: | Units of 1/1,000th of a series A convertible preferred share and a warrant
|
| Amount: | $28 million
|
| Units: | 14 million
|
| Price: | $2.00
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Settlement date: | Sept. 26
|
| Stock symbol: | Nasdaq: PATH
|
| Stock price: | $4.34 at close Sept. 25
|
| Market capitalization: | $46.44 million
|
|
|
| Preferreds
|
| Dividends: | 8%
|
| Conversion ratio: | 1,000 common shares per preferred share
|
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