Deal sells preferreds, warrants to Biotechnology Value, Rock Springs
By Devika Patel
Knoxville, Tenn., Sept. 12 – Anthera Pharmaceuticals, Inc. gave further details about a $45.33 million offering of series X convertible preferred and series X-1 convertible preferred stock with Biotechnology Value Fund, LP and Rock Springs Capital Master Fund LP in an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $17 million at pricing on Sept. 6.
The 45,330 preferreds are being sold with warrant coverage, with 17,000 series X preferreds and warrants for 70.62 shares issued in the initial tranche and 28,330 series X-1 preferrreds to be issued in the second tranche.
The conversion price for the series X will be equal to the lesser of $2.95, the closing price for the stock on Sept. 6 and the five-day volume-weighted average price of the stock over the five full trading days following the earlier of the date of the company’s announcement of topline and/or efficacy data from the ongoing Chablis-SC1 study or the date of the company’s announcement that it is terminating or abandoning the Chablis-SC1 study.
The conversion price for series X-1 will be equal to the lesser of 75% of the five-day volume-weighted average price of the stock over the five full trading days following the company’s announcement of top-line clinical efficacy and safety data from its ongoing “Solution” clinical study and 175% of the then-applicable conversion price for the series X preferreds, provided that the conversion price is not less than $2.95.
Each 30-month warrant has an exercise price equal to the series X conversion price, plus a 20% premium.
Anthera, based in Hayward, Calif., is a biopharmaceutical company.
| Issuer: | Anthera Pharmaceuticals, Inc.
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| Issue: | Series X convertible preferred and series X-1 convertible preferred stock
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| Amount: | $45.33 million
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| Preferreds: | 45,330
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| Conversion price: | Varying
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| Warrants: | 25% coverage
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| Warrant expiration: | 30 months
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| Warrant strike price: | 120% of the series X conversion price
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| Investors: | Biotechnology Value Fund, LP and Rock Springs Capital Master Fund LP
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| Pricing date: | Sept. 6
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| Settlement date: | Sept. 6 (for $17 million)
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| Stock symbol: | Nasdaq: ANTH
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| Stock price: | $2.93 at close Sept. 2
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| Market capitalization: | $127.48 million
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