Agent MTS Securities assists in funding company's operations into 2013
By Devika Patel
Knoxville, Tenn., June 29 - A.P. Pharma, Inc. said it will raise $24 million in a private placement of stock through agent MTS Securities, LLC.
The company will sell units of one common share and a half-share warrant at $0.15 per unit.
The whole warrants are each exercisable at $0.18. The strike price reflects a 35.71% discount to the June 28 closing price of $0.28.
Settlement is expected July 1.
Proceeds will be used to finance operations into 2013.
"We believe that this financing will provide the resources necessary to perform the activities needed to resubmit our New Drug Application for APF530 in the first half of 2012 and to fund our operations beyond the expected U.S. Food and Drug Administration action date for APF530 in the second half of 2012," president and chief executive officer John Whelan said in a press release. "We remain committed to obtaining regulatory approval of APF530, which we believe will provide physicians and cancer patients with an important option for the prevention of chemotherapy-induced nausea and vomiting, a terrible morbidity associated with cancer treatment."
A.P. Pharma is a Redwood City, Calif., specialty pharmaceutical company.
| Issuer: | A.P. Pharma, Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $24 million
|
| Price: | $0.15
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | $0.18
|
| Agent: | MTS Securities, LLC
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| Pricing date: | June 29
|
| Settlement date: | July 1
|
| Stock symbol: | Pink Sheets: APPA
|
| Stock price: | $0.28 at close June 28
|
| Market capitalization: | $9.19 million
|
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