By Sheri Kasprzak
New York, Oct. 14 - Tercica, Inc. said it has secured a committed equity financing facility with Kingsbridge Capital Ltd. for up to $75 million.
Under the terms of the equity line, Kingsbridge will, over the course of three years, buy shares of Tercica at the higher of $3.00 each or 90% of the closing share price over eight trading days ending the day before each draw. The shares will be purchased at discounts ranging from 6% to 10% depending upon the average market price of Tercica's stock during the pricing period.
Tercica may access the line at the lesser of $7 million or 2% of its market capitalization per tranche.
Kingsbridge also received warrants for 260,000 shares, exercisable for five years at a 30% premium to the company's average closing stock price over the five trading days before the date of the agreement.
Based in Brisbane, Calif., Tercica is a biopharmaceutical company focused on developing and commercializing products to promote endocrine health.
| Issuer: | Tercica, Inc.
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| Issue: | Committed equity financing facility
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| Amount: | $75 million
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| Tenor: | Three years
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| Price: | The higher of $3.00 per share or 90% of the closing share price over eight trading days ending the day before a draw, all at discounts ranging between 6% and 10% depending upon average market price
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| Warrants: | For 260,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | A 30% premium to the company's average closing stock price for the five trading days before agreement date
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| Investor: | Kingsbridge Capital Ltd.
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| Settlement date: | Oct. 14
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| Stock price: | $9.99 at close Oct. 14
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