By Sheri Kasprzak
New York, Dec. 14 - Geron Corp. is getting ready to close a $40 million direct placement of its stock with a group of institutional investors.
The investors agreed to buy 5 million shares in the deal at $8.00 each. The price per share is a 14.3% discount to the company's $9.34 closing stock price on Wednesday.
Geron will also issue warrants exercisable for up to 1.875 million shares, exercisable for 75 days at $8.00 each. The investors will also receive warrants for up to 3 million shares, exercisable at a premium for 180 days. The strike price of the longer-term warrants could not be determined.
The shares will be sold under the company's registration statement.
Proceeds will be used for clinical trials of the company's telomerase inhibitor GRN 163L and its cancer vaccine.
Geron, based in Menlo Park, Calif., develops therapeutic treatments for cancer, degenerative diseases and chronic diseases.
Issuer: | Geron Corp.
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Issue: | Stock
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Amount: | $40 million
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Shares: | 5 million
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Price: | $8.00
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Warrants: | For 1.875 million shares and for up to 3 million shares
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Warrant expiration: | 75 days for 1.875 million shares, 180 days for 3 million shares
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Warrant strike price: | $8.00 for 1.875 million shares
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Announcement date: | Dec. 14
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Stock symbol: | Nasdaq: GERN
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Stock price: | $9.34 at close Dec. 13
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