Offering conducted by ROTH Capital to fund research and development
By Devika Patel
Knoxville, Tenn., Oct. 3 - Tengion, Inc. said it will conduct a $15 million private placement of its senior secured convertible notes through agent ROTH Capital Partners, LLC. The deal was announced Sept. 10.
The notes' principal includes the exchange of about $1 million of debt issued in the company's bridge financing.
The notes are convertible into stock at a conversion rate of 1,333 shares per $1,000 of notes.
The investors also received warrants for about 51.1 million shares, which are each exercisable at $0.75, a 48.98% discount to the Oct. 2 closing share price of $1.47.
Investors include Celgene Corp., RA Capital Management LLC, Deerfield Management Co., LP, Bay City Capital and HealthCap.
Proceeds will be used for research and development activities.
Located in King of Prussia, Pa., Tengion develops autologous neo-organs and tissues, such as bladders, that are derived from the patient's own (autologous) cells.
| Issuer: | Tengion, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $15 million
|
| Conversion rate: | 1,333 shares per $1,000 of notes
|
| Warrants: | For about 51.1 million shares
|
| Warrant strike price: | $0.75
|
| Agent: | ROTH Capital Partners, LLC
|
| Investors: | Celgene Corp., RA Capital Management LLC, Deerfield Management Co., LP, Bay City Capital and HealthCap
|
| Announcement date: | Sept. 10
|
| Pricing date: | Oct. 3
|
| Stock symbol: | OTCBB: TNGN
|
| Stock price: | $1.47 at close Oct. 2
|
| Market capitalization: | $3.47 million
|
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