By Abigail W. Adams
Portland, Me., Jan. 18 – Sunesis Pharmaceuticals Inc. priced $8.5 million, or 17,000 shares, of 0% series E convertible preferred stock after the market close on Thursday at a public offering price of $500, according to a company news release.
Wells Fargo Securities LLC and Oppenheimer & Co. are the bookrunners for the registered offering.
The series E preferred stock is convertible into 1,000 shares of common stock provided the holder would not own more than 9.98% of the company’s outstanding shares upon conversion.
There will be no dividends on the series E preferred stock except to the extent dividends are paid on common stock, which will allow holders to participate in dividends on an as-converted basis, according to the 424B5 filing.
The convertible preferred stock priced concurrently with $11.5 million, or 23 million shares, of common stock, which priced at 50 cents a share.
The common stock offering carries a greenshoe of $1,725,000 or 3.45 million shares.
Gross proceeds from the combined offerings was $20 million. Proceeds will be used to fund the development of the drug vecabrutinib, to repay debt and for general corporate purposes.
Sunesis is a San Francisco-based biopharmaceutical company.
Issuer: | Sunesis Pharmaceuticals Inc.
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Securities: | Series E convertible preferred stock
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Amount: | $8.5 million or 17,000 shares
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Maturity: | Perpetual
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Bookrunners: | Wells Fargo Securities LLC and Oppenheimer & Co.
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Dividend: | 0%
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Price: | $500
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Conversion rate: | 1,000
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Pricing date: | Jan. 17
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Settlement date: | Jan. 23
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Concurrent offering: | $11.5 million or 23 million shares of common stock
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Stock symbol: | Nasdaq: SNSS
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Stock price: | $0.50 in concurrent offering
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Market capitalization: | $19.4 million
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