Company had previously issued $40 million of preferreds on June 7
By Devika Patel
Knoxville, Tenn., Sept. 14 - Hana Biosciences Inc. raised another $1.26 million in a $100 million private placement of series A-1 convertible preferred stock with Warburg Pincus and Deerfield Management on Sept. 10, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It raised $40 million on June 7.
The company also said it revised the terms of the preferreds.
The company is selling the preferreds at $100.00 apiece. It sold 400,000 preferreds in the first tranche and 12,562 preferreds in the second.
The 9% preferreds were initially convertible into common stock at $0.1288. Under the revised terms, the securities will now be convertible at $0.736 per share, a 220% premium to the June 4 closing share price of $0.23, and the dividend will be payable in kind for the first five years.
Hana plans to use the proceeds to advance its clinical development and commercialization programs and for general corporate purposes.
Hana is a biopharmaceutical company based in South San Francisco, Calif.
| Issuer: | Hana Biosciences Inc.
|
| Issue: | Series A-1 convertible preferred stock
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| Amount: | $100 million
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| Price: | $100.00
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| Dividends: | 9%, payable in kind for five years
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| Conversion price: | $0.736
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| Investors: | Warburg Pincus and Deerfield Management
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| Settlement dates: | June 7 (for $40 million), Sept. 10 (for $1,265,200)
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| Stock symbol: | OTCBB: HNAB
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| Stock price: | $0.23 at close June 4
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| Market capitalization: | $49.69 million
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