Brokered deal sells units of preferred stock and two types of warrants
By Devika Patel
Knoxville, Tenn., April 10 - Dara BioSciences, Inc. priced a $15 million public offering of preferred units in a prospectus filed April 6 with the Securities and Exchange Commission. Ladenburg Thalmann & Co. Inc. is the agent.
The company will sell 15,000 preferred units of one series B-2 convertible preferred share and two warrants. The units are each priced at $1,000, and each unit warrant is exercisable for 500 common shares.
The preferreds are each convertible into 1,000 common shares at $1.00 per share and may be redeemed.
Half of the warrants are exercisable at $1.00, with the remainder exercisable at $1.25. The strike prices represent a 28.57% and 10.71% discounts, respectively, to the April 5 closing share price of $1.40.
Proceeds will be used for the ongoing development of the company's lead candidates and for working capital and general corporate purposes.
Based in Raleigh, N.C., Dara is a pharmaceutical company that acquires therapeutic molecules and medical technologies.
| Issuer: | Dara BioSciences, Inc.
|
| Issue: | Units one series B-2convertible preferred share, a class A warrant and a class B warrant
|
| Amount: | $15 million
|
| Units: | 15,000
|
| Price: | $1,000
|
| Conversion price: | $1.00
|
| Conversion ratio: | Into 1,000 shares (per preferred)
|
| Call: | Yes
|
| Warrants: | Two warrants per unit (for a total of 1,000 common shares per unit)
|
| Warrant strike price: | $1.00 (for 500 shares), $1.25 (for 500 shares)
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | April 6
|
| Stock symbol: | Nasdaq: DARA
|
| Stock price: | $1.40 at close April 5
|
| Market capitalization: | $6.97 million
|
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