By Devika Patel
Knoxville, Tenn., Aug. 5 - EPIX Pharmaceuticals, Inc. announced it has arranged a $50 million equity financing facility agreement with Kingsbridge Capital Ltd.
The three-year agreement obligates Kingsbridge to purchase the lesser of 8.3 million shares or $50 million of common stock from EPIX. EPIX may access the capital for up to three years.
EPIX may access capital in tranches of up to 1.5% of its market capitalization at the time of the drawdown.
Alternatively, based upon the company's prior 30-day trading volume, EPIX may have the ability to increase each drawdown from 1.5% to up to 3% of its market capitalization at the time of the drawdown.
Kingsbridge will purchase common shares at discounts ranging from 6% to 12%, depending on the volume-weighted average market price of the common stock during the eight-day pricing period, provided that the minimum acceptable purchase price for any shares to be issued to Kingsbridge during the eight-day period is determined by the higher of $1.25 or 90% of EPIX's common stock closing price the day before the commencement of each drawdown.
Kingsbridge also received a warrant for 400,000 shares. The warrant is exercisable at $2.49 for five years.
Lexington, Mass.-based EPIX is a biopharmaceutical company.
| Issuer: | EPIX Pharmaceuticals, Inc.
|
| Issue: | Committed equity financing facility
|
| Amount: | $50 million
|
| Tenor: | Three years
|
| Price: | Discounts ranging from 6% to 12%; floor of the higher of $1.25 or 90% of EPIX's common stock closing price the day before the commencement of each drawdown
|
| Warrants: | For 400,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.49
|
| Investor: | Kingsbridge Capital Ltd.
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| Pricing date: | Aug. 5
|
| Stock symbol: | Nasdaq: EPIX
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| Stock price: | $2.02 at close Aug. 4
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