Investor Aspire Capital commits to buy company’s shares over two years
By Devika Patel
Knoxville, Tenn., Aug. 12 – Apricus Biosciences, Inc. negotiated a $22.44 million two-year common stock purchase agreement with Aspire Capital Fund, LLC on Aug. 12, according to an 8-K and prospectus supplement filed Tuesday with the Securities and Exchange Commission. The company also canceled its Dec. 31, 2011 purchase agreement with Ascendiant Capital.
The company will sell up to 100,000 shares in each tranche of up to $500,000, which may be increased to up to 2 million shares by mutual agreement.
The purchase price will be equal to the lowest sale price of the stock on the purchase date or the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive trading days preceding the purchase date. The company may not sell more than 7,616,680 shares during the two-year term.
In the initial tranche, the company plans to sell 1,159,824 shares at $1.72 per share for roughly $2 million.
Aspire also received 255,161 shares as a commitment fee.
Proceeds will be used for general working capital purposes.
Apricus is a pharmaceutical research and development company based in San Diego.
| Issuer: | Apricus Biosciences, Inc.
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| Issue: | Common stock purchase agreement
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| Amount: | $22.44 million
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| Tenor: | Two years
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| Warrants: | No
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| Investor: | Aspire Capital Fund, LLC
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| Fees: | 255,161 shares
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| Pricing date: | Aug. 12
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| Stock symbol: | Nasdaq: APRI
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| Stock price: | $1.97 at close Aug. 11
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| Market capitalization: | $73.82 million
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