Deal includes 50% warrant coverage; Rodman & Renshaw is the agent
By Devika Patel
Knoxville, Tenn., June 27 – Eyegate Pharmaceuticals, Inc. said it plans a $3.77 million registered direct offering of series A convertible preferred stock and common shares. Rodman & Renshaw, LLC is the agent.
The company will sell 2,776.5 preferreds at $1,000.00 apiece and 441,000 common shares at $2.25 per share. The price per common share is a 26.23% discount to the June 24 closing share price of $3.05.
The investors will also receive 50% warrant coverage. The warrants are each exercisable at $3.50 for five years. The strike price is a 14.75% premium to the June 24 closing share price.
The preferreds are convertible into about 1.23 million common shares at a conversion price of $2.25 per share, which is a 26.23% discount to the June 24 closing price. The preferreds have no dividend.
Settlement is expected June 30.
Proceeds will be used to support operations, including clinical trials, working capital and other general corporate purposes.
EyeGate also reported that it halted all future sales under an at-the-market offering of 1,319,289 common shares that was negotiated with H.C. Wainwright & Co., LLC on May 24. The agent did not sell any shares under the agreement.
EyeGate is a Waltham, Mass.-based pharmaceutical company that is focused on therapeutics and drug-delivery systems for treating eye diseases.
| Issuer: | Eyegate Pharmaceuticals, Inc.
|
| Issue: | Series A convertible preferred stock, common stock
|
| Amount: | $3,768,750
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | June 27
|
| Settlement date: | June 30
|
| Stock symbol: | Nasdaq: EYEG
|
| Stock price: | $3.05 at close June 24
|
| Market capitalization: | $20.99 million
|
|
|
| Preferreds
|
| Amount: | $2,776,500
|
| Preferreds: | 2,776.5
|
| Price: | $1,000.00
|
| Conversion price: | $2.25
|
| Conversion premium: | 15.39%
|
|
|
| Common stock
|
| Amount: | $992,250
|
| Shares: | 441,000
|
| Price: | $2.25
|
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