Deal includes warrants; proceeds used for working capital purposes
By Devika Patel
Knoxville, Tenn., Feb. 3 - Transgenomic Inc. said it has negotiated a $22 million private placement of stock.
The company will sell 22 million common shares at $1.00 apiece. The amount of shares includes 3 million shares which were issued to entities associated with Third Security, LLC in connection with the conversion of notes held by the investor into the shares offered in the placement.
The price per share is a 15.97% discount to the Feb. 2 closing share price of $1.19.
The investors will also receive five-year warrants for 11 million shares, which are each exercisable at $1.25. The strike price represents a 5.04% premium to the Feb. 2 closing share price.
Craig-Hallum Capital Group LLC is the agent.
Proceeds will be used for general corporate and working capital purposes, primarily to accelerate development of several of the company's key initiatives.
Based in Omaha, Transgenomic's three business divisions support clinical trials for the development of oncology drugs, develop molecular diagnostics for oncology and various medical disorders and provide equipment and reagents for clinical research.
| Issuer: | Transgenomic Inc.
|
| Issue: | Common shares
|
| Amount: | $22 million
|
| Shares: | 22 million
|
| Price: | $1.00
|
| Warrants: | For 11 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Agent: | Craig-Hallum Capital Group LLC
|
| Investor: | Third Security, LLC (for $3 million)
|
| Pricing date: | Feb. 3
|
| Stock symbol: | OTCBB: TBIO
|
| Stock price: | $1.19 at close Feb. 2
|
| Market capitalization: | $54.32 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
