Stifel, Roth to sell 5.6 million shares to fund exclusivity agreement
By Devika Patel
Knoxville, Tenn., Aug. 16 - Retrophin Inc. said it plans a private placement of stock to raise about $25 million.
The company will sell about 5.6 million common shares.
Investors also will receive warrants for about 2.8 million shares, which are each exercisable at $6.00. The strike price is a 30.44% premium to the Aug. 15 closing share price of $4.60.
Stifel is the senior agent. Roth Capital Partners is co-lead placement agent.
Settlement is expected during the week of Aug. 19.
Retrophin plans to use the proceeds to pursue its recently announced exclusivity agreement with a major pharmaceutical company for the right to negotiate a royalty-bearing U.S. license for a product to be developed for the treatment of autism and schizophrenia, for general corporate purposes, as well as for advancement of its pipeline.
The biotechnology company is based in New York.
| Issuer: | Retrophin Inc.
|
| Issue: | Common stock
|
| Amount: | $25 million (approximate)
|
| Shares: | 5.6 million (approximate)
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| Warrants: | For about 2.8 million shares
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| Warrant strike price: | $6.00
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| Agents: | Stifel (senior), Roth Capital Partners (co-lead placement agent)
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| Pricing date: | Aug. 16
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| Stock symbol: | OTCBB: RTRX
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| Stock price: | $4.60 at close Aug. 15
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| Market capitalization: | $74.17 million
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