Company sells common shares, five-year warrants in brokered offering
By Devika Patel
Knoxville, Tenn., June 27 - Derma Sciences, Inc. said it raised $29.07 million through a private placement of stock. The deal priced for about $29 million on June 20. Jennison Associates LLC, RA Capital Management and Deerfield Management were the lead investors.
The company sold 3,524,239 common shares at $8.25 per share. The price per share is a 1.32% discount to the June 17 closing share price of $8.36.
Investors also received warrants for 1,762,118 shares. The warrants are each exercisable at $9.90 for five years. The strike price is an 18.42% premium to the June 17 closing price of $8.36.
The offering was conducted by lead agents Oppenheimer & Co. Inc. and Canaccord Genuity Inc. Roth Capital Partners and Rodman & Renshaw were advisors.
Proceeds will be used to advance the company's pharmaceutical product DSC127 into phase 3 trials for the treatment of diabetic foot ulcers, to hire additional salespeople for the company's advanced wound care products, to repay debt and for general corporate purposes.
Princeton, N.J.-based Derma Sciences manufactures and markets advanced wound care products.
| Issuer: | Derma Sciences, Inc.
|
| Issue: | Common stock
|
| Amount: | $29,074,972
|
| Shares: | 3,524,239
|
| Price: | $8.25
|
| Warrants: | For 1,762,118 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $9.90
|
| Agents: | Oppenheimer & Co. Inc. and Canaccord Genuity Inc. (leads)
|
| Investors: | Jennison Associates LLC, RA Capital Management and Deerfield Management
|
| Pricing date: | June 20
|
| Settlement date: | June 27
|
| Stock symbol: | Nasdaq: DSCI
|
| Stock price: | $8.36 at close June 17
|
| Market capitalization: | $56.38 million
|
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