8% senior note due 2019 converts to common stock at $17.50 per share
By Devika Patel
Knoxville, Tenn., July 3 – In a July 1 story about Raptor Pharmaceutical Corp., Prospect News incorrectly reported the company’s stock symbol. The correct ticker is Nasdaq: RPTP. In that story, the company said it arranged a $60 million private placement of 8% convertible senior notes with HealthCare Royalty Partners. The investor also will provide a $10 million 8% loan due March 31, 2020.
The note is due on Aug. 1, 2019 and converts to common shares at an initial conversion rate of 57.14 shares per $1,000 of notes, for a conversion price of $17.50 per share. The conversion price is a 51.52% premium to the June 30 closing share price of $11.55. The company may force conversion.
Proceeds will be used for expansion of the company’s manufacturing capacity, expansion of commercial operations in Europe, advancement of the company’s development programs and general corporate purposes, including working capital.
“At closing and based on our cash balance at the end of the first quarter, Raptor will have over $120 million in cash on our balance sheet, which will be used to advance our development pipeline and continue the build out of our commercial platform,” chief executive officer Christopher M. Starr said in a press release.
Raptor is a Novato, Calif., biotechnology company that bioengineers novel drugs and drug-targeting platforms derived from the human receptor-associated protein and related proteins.
Issuer: | Raptor Pharmaceutical Corp.
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Issue: | Convertible senior notes
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Amount: | $60 million
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Maturity: | Aug. 1, 2019
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Coupon: | 8%
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Conversion ratio: | 57.14 shares per $1,000 of notes
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Conversion price: | $17.50
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Conversion premium: | 51.52%
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Call: | Yes
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Warrants: | No
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Investor: | HealthCare Royalty Partners
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Pricing date: | July 1
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Stock symbol: | Nasdaq: RPTP
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Stock price: | $11.55 at close June 30
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Market capitalization: | $709.43 million
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