By Sheri Kasprzak
New York, June 18 - Lexicon Pharmaceuticals, Inc. intends to raise $154.35 million from a private placement of stock with warrants for up to $50.985 million in additional proceeds.
Invus Group, LLC agreed to buy the shares as part of its plan to transition into an integrated biopharmaceutical company.
Invus has the option to buy up to $345 million in additional shares over the next four years.
Invus will purchase 34.3 million shares at $4.50 each, a 46% premium to the company's $3.08 closing stock price.
The investor will receive warrants for 16.5 million shares, exercisable at $3.09 each, a price equal to the 10-day volume-weighted average price of the company's stock as of June 14. The offering is subject to shareholder approval.
The offering will bring Invus' ownership of Lexicon to 40% of the post-transaction outstanding common stock.
The transaction will be submitted for approval to the shareholders in August or September.
Connected to the offering, Lexicon announced plans to enter into a $60 million product-development collaboration with Symphony Capital Partners, LP. The plan will help move Lexicon's first three drug candidates into advanced clinical development. Those candidates include LX6171 for cognitive disorders, LX1031 for irritable bowel syndrome and LX1032 for gastrointestinal disorders.
Based in the Woodlands, Texas, Lexicon develops treatments for human diseases.
| Issuer: | Lexicon Pharmaceuticals, Inc.
|
| Issue: | Stock
|
| Amount: | $154.35 million
|
| Shares: | 34.3 million
|
| Price: | $4.50
|
| Warrants: | For 16.5 million shares
|
| Warrant strike price: | $3.09
|
| Investor: | Invus Group, LLC
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| Announcement date: | June 18
|
| Stock symbol: | Nasdaq: LXRX
|
| Stock price: | $3.08 at close June 15
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