Offering sells 17.5 million units of one common share and one warrant
By Devika Patel
Knoxville, Tenn., May 2 - Idera Pharmaceuticals, Inc. priced a public offering of units to raise $8.75 million, according to a prospectus filed Thursday with the Securities and Exchange Commission. Piper Jaffray & Co. is the underwriter.
The company will sell 17.5 million units of one common share and one warrant at $0.50 per unit.
The five-year warrants are each exercisable at $0.47, a 32.86% discount to the May 1 closing share price of $0.70.
In addition, investors who buy units that might result in ownership of greater than 9.9% of the company's stock will be offered pre-funded warrants to purchase up to 15,816,327 shares. Each pre-funded warrant will be exercisable at $0.01 for seven years.
Pillar Pharmaceuticals I, LP and Pillar Pharmaceuticals II, LP may invest $2.5 million.
Settlement is expected May 7.
Idera, based in Cambridge, Mass., develops targeted immune therapies based on the modulation of Toll-like receptors.
Issuer: | Idera Pharmaceuticals, Inc.
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Issue: | Units of one common share and one warrant
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Amount: | $8.75 million
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Units: | 17.5 million
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Price: | $0.50
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Warrants: | One warrant per unit, plus pre-funded warrants for 15,816,327 shares
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Warrant expiration: | Five years, seven years
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Warrant strike price: | $0.47, $0.01
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Underwriter: | Piper Jaffray & Co.
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Investors: | Pillar Pharmaceuticals I, LP and Pillar Pharmaceuticals II, LP (for $2.5 million)
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Pricing date: | May 2
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Settlement date: | May 7
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Stock symbol: | Nasdaq: IDRA
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Stock price: | $0.70 at close May 1
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Market capitalization: | $14.6 million
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