By Sheri Kasprzak
Atlanta, March 3 - Allos Therapeutics Inc. said it has wrapped a direct placement for $50 million.
The company sold 2,262,443 shares of preferreds at $22.10 each to Warburg Pincus Private Equity VIII LP.
The preferreds are priced at a 7.5% discount to the 20-day trailing average closing price. The offering is expected to close March 4.
The company also has the option to sell up to an additional $10 million preferreds before March 8 to no more than three institutional investors owning more than 4% of the company's exchangeable preferred stock.
Each share of the preferreds is exchangeable into 10 shares of common stock on or before the 15-month anniversary of the closing date. If the preferreds remain outstanding on the first anniversary of the closing date, the preferreds will accrue dividends at 10% annually.
The company may redeem the outstanding preferreds after the fourth anniversary at the greater of the purchase price per share plus all dividends or 10 times the fair market value of a share of common stock on the redemption date.
The preferreds are being sold under Allos's shelf registration.
Needham & Co. Inc. is the placement agent.
Based in Westminster, Colo., Allos is a biopharmaceutical company focused on treatments for cancer. The proceeds will be used to fund research and development activities, including the ongoing phase 3 trial of Efaproxyn for breast cancer.
| Issuer: | Allos Therapeutics Inc.
|
| Issue: | Exchangeable preferred stock
|
| Amount: | $50 million
|
| Greenshoe: | Up to $10 million by March 8
|
| Shares: | 2,262,443
|
| Price: | $22.10
|
| Dividend: | 10%
|
| Exchange ratio: | Into 10 common shares for each preferred
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| Call: | May redeem preferred after the fourth anniversary at the greater of the purchase price plus dividends or 10 times the fair market value of a common share
|
| Warrants: | No
|
| Placement agent: | Needham & Co. Inc.
|
| Announcement date: | March 3
|
| Settlement date: | March 4
|
| Stock price: | $2.23 at close March 2
|
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