Sale of senior secured notes includes warrants for 81 million shares
By Devika Patel
Knoxville, Tenn., July 5 - Tengion, Inc. completed a private placement of its senior secured convertible notes for about $18.58 million on June 28, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes mature on June 30, 2016 and are convertible into stock at a conversion price of $0.69, a 122.58% premium to the June 27 closing share price of $0.31.
The investors also received warrants for about 81 million shares. Of the warrants, 26,921,741 are exercisable for five years and 53,843,479 are exercisable for 10 years. The strike price is $0.69, which is also a 122.58% premium to the June 27 closing share price.
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: | $18,576,000 (approximate)
|
| Maturity: | June 30, 2016
|
| Conversion price: | $0.69
|
| Warrants: | For about 81 million shares
|
| Warrant expiration: | Five years, 10 years
|
| Warrant strike price: | $0.69
|
| Settlement date: | June 28
|
| Stock symbol: | OTCBB: TNGN
|
| Stock price: | $0.31 at close June 27
|
| Market capitalization: | $1.55 million
|
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