By Sheri Kasprzak
New York, July 19 - Kosan Biosciences Inc. obtained a $50 million equity line from Kingsbridge Capital Ltd.
Under the three-year agreement, Kingsbridge may buy shares of Kosan at discounts ranging from 6% to 10%, depending upon the average price of the company's stock during an eight-day pricing period, determined by the higher of $2.00 or 8.5% of the company's share price the day before a draw.
The draws may be made in tranches of up to $10 million or 2% of the company's market capitalization at the time of a draw.
Kingsbridge received warrants for up to 285,000 shares, exercisable at $4.94 each for five years.
Kosan, based in Hayward, Calif., develops treatments for cancer.
| Issuer: | Kosan Biosciences Inc.
|
| Issue: | Equity line
|
| Amount: | $50 million
|
| Tenor: | Three years
|
| Price: | Discount of 6% to 10% of the average price of the company's stock during an eight-day pricing period
|
| Warrants: | For 285,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.94
|
| Investor: | Kingsbridge Capital Ltd.
|
| Settlement date: | July 19
|
| Stock symbol: | Nasdaq: KOSN
|
| Stock price: | $3.90 at close July 19
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
