By Devika Patel
Knoxville, Tenn., March 28 - Corcept Therapeutics Inc. entered into a $60 million three-year committed equity financing facility with Kingsbridge Capital Ltd., according to an 8-K filed Friday with the Securities and Exchange Commission. The deal was arranged on March 25.
Corcept can access up to $10 million from Kingsbridge in each tranche, in exchange for newly issued common shares. Corcept may not issue more than 9.6 million shares under this agreement.
Corcept may access capital under the facility in tranches of up to 1.25% of its market capitalization at the time of the drawdown, or, at Corcept's option, the lesser of 2.5% of its market capitalization at the time of the drawdown period and an alternative drawdown amount as defined in the agreement.
Each tranche will be issued and priced over an eight-day pricing period. Kingsbridge will buy common shares at discounts ranging from 6% to 10%, depending on the average market price of the common stock during the eight-day pricing period.
The minimum acceptable purchase price for any shares Kingsbridge may buy is determined by the higher of $1.50 or 90% of Corcept's common stock closing price the day before each drawdown.
Kingsbridge also received a five-year warrant for 330,000 shares, exercisable at $3.525.
Menlo Park, Calif.-based Corcept is a pharmaceutical company engaged in the development of medications for the treatment of severe psychiatric and metabolic diseases.
| Issuer: | Corcept Therapeutics Inc.
|
| Issue: | Committed equity financing facility
|
| Amount: | $60 million
|
| Tenor: | Three years
|
| Warrants: | For 330,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.525
|
| Investor: | Kingsbridge Capital Ltd.
|
| Settlement date: | March 25
|
| Stock symbol: | Nasdaq: CORT
|
| Stock price: | $2.84 at close March 25
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
