By Angela McDaniels
Tacoma, Wash., Sept. 25 - Affymax, Inc. has arranged an equity facility under which it may sell up to $60 million of common stock to Azimuth Opportunity, Ltd., according to a company news release.
The term of the facility is two years, and Affymax can request up to 36 drawdowns.
Shares issued under the facility will be sold at a discount of 3.75% to 5.75% to the volume-weighted average price of the company's stock, subject to a minimum price, according to an 8-K filing with the Securities and Exchange Commission.
Azimuth is not obligated to buy any shares under the facility that would result in it owning more than 9.9% of Azimuth's stock. Each drawdown is limited to 2.5% of the company's market capitalization or less, and the number of shares the company can issue under the facility is limited to no more than one share less than 20% of its stock.
Reedland Capital Partners is the agent.
The facility will provide financing flexibility as the company prepares for the potential commercial launch of Hematide in the renal anemia market, the release stated. Affymax is developing the drug with Takeda Pharmaceutical Co. Ltd.
Affymax is a biopharmaceutical company based in Palo Alto, Calif.
| Issuer: | Affymax, Inc.
|
| Issue: | Equity facility
|
| Amount: | $60 million
|
| Maturity: | 2011
|
| Per-share price: | VWAP of company's stock minus 3.75% to 5.75%
|
| Warrants: | No
|
| Investor: | Azimuth Opportunity, Ltd.
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| Agent: | Reedland Capital Partners
|
| Pricing date: | Sept. 25
|
| Stock symbol: | Nasdaq: AFFY
|
| Stock price: | $23.58 at close Sept. 24
|
| Market capitalization: | $441.06 million
|
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