Deal funds product development activities; Maxim Group is bookrunner
By Devika Patel
Knoxville, Tenn., March 26 - Medgenics Inc. said the underwriters for a public offering of units opted to exercise the deal's greenshoe in part for total proceeds of $31.87 million. The offering was announced Feb. 7 and priced for $29.4 million with a $4.41 million greenshoe on Feb. 8.
The company sold 6.07 million units of one common share and a half-share warrant at $5.25 per unit, with each whole warrant exercisable at $6.78 until Feb. 13, 2018. Of the units, 470,000 were part of the greenshoe.
The strike price is a 137.9% premium to the Feb. 7 closing share price of $2.85.
Maxim Group LLC was the bookrunner.
Proceeds will be used for product development activities, including clinical trials, development, patent maintenance fees and intellectual property support, and for working capital and other general corporate purposes, which may include the acquisition or licensing of complementary technologies, products or business.
The medical technology and therapeutics company is based in San Francisco.
| Issuer: | Medgenics Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $31,867,500 (including $2,467,500 greenshoe)
|
| Units: | 6.07 million
|
| Price: | $5.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Feb. 13, 2018
|
| Warrant strike price: | $6.78
|
| Bookrunner: | Maxim Group LLC
|
| Co-managers: | National Securities Corp. and MLV & Co.
|
| Announcement date: | Feb. 7
|
| Pricing date: | Feb. 8
|
| Settlement date: | March 26
|
| Stock symbol: | NYSE: MDGN
|
| Stock price: | $2.85 at close Feb. 7
|
| Market capitalization: | $59.36 million
|
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