By Sheri Kasprzak
New York, Dec. 20 - Favrille, Inc. obtained a $40 million committed equity financing facility with Kingsbridge Capital Ltd.
Under the three-year equity line, Kingsbridge may buy shares of Favrille at between 90% and 94% of the volume weighted average price of the company's stock over an eight-day pricing period.
The maximum amount Favrille may require Kingsbridge to purchase in any draw is the lesser of $10 million or 1.75% of the company's market capitalization at the time of the draw. The minimum acceptable price per share is the greater of $1.75 or 90% of the VWAP over the eight-day pricing period.
The investor will receive warrants for 250,000 shares, exercisable at $3.98 each for five years.
San Diego-based Favrille develops treatments for cancer and immune system disorders.
Issuer: | Favrille, Inc.
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Issue: | Committed equity financing facility
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Amount: | $40 million
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Tenor: | Three years
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Price: | 90% to 94% of the VWAP over eight trading days before draw
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Warrants: | For 250,000 shares
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Warrant expiration: | Five years
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Warrant strike price: | $3.98
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Investor: | Kingsbridge Capital Ltd.
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Settlement date: | Dec. 19
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Stock symbol: | Nasdaq: FVRL
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Stock price: | $2.73 at close Dec. 19
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