Series A-1 convertible preferreds sold with five-year warrants in deal
By Devika Patel
Knoxville, Tenn., Jan. 11 – Transgenomic Inc. settled a $2.2 million private placement of series A-1 convertible preferred stock on Jan. 8, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal priced on Jan. 6.
The company sold 2,365,243 units of one preferred and 0.75 warrants at $0.93 per unit. Each warrant is exercisable at $1.21 for five years. The strike price is a 12.04% premium to the Jan. 5 closing share price of $1.08.
The preferreds are convertible into common stock on a one for one basis.
Affiliates of Third Security, LLC participated in the offering. Craig-Hallum Capital Group LLC was the agent.
Proceeds will be used for general corporate and working capital purposes.
The company also said it arranged a conversion agreement with the holders of its series A and series B convertible preferred stock and extended the maturity date of its loan with affiliates of Third Security, LLC to November 2017. The preferreds were converted into a total of 6,780,179 common shares. No series A or series B preferreds remain outstanding.
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.
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| Issue: | Units of one series A-1 convertible preferred share and 0.75 warrants
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| Amount: | $2,199,676
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| Units: | 2,365,243
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| Price: | $0.93
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| Conversion ratio: | One for one
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| Warrants: | 0.75 warrants per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.21
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| Agent: | Craig-Hallum Capital Group LLC
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| Investor: | Third Security, LLC
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| Pricing date: | Jan. 6
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| Settlement date: | Jan. 8
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| Stock symbol: | Nasdaq: TBIO
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| Stock price: | $1.08 at close Jan. 5
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| Market capitalization: | $13.64 million
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