Offering sells 42,021,579 units of one common share and 0.4 warrants
By Devika Patel
Knoxville, Tenn., June 11 – Arca Biopharma, Inc. negotiated a $37 million private placement of units on June 10 after the close, according to an 8-K filed Thursday with the Securities and Exchange Commission. The offering is being conducted by agent MTS Securities, LLC.
The company will sell 42,021,579 units of one common share and 0.4 warrants at $0.8805 per unit. The whole warrants are each exercisable at $0.8716 for seven years. The strike price is a 2.54% premium to the June 9 closing share price of $0.85 and is also 120% of the June 10 closing price of $0.83, minus $0.125, the company said in a press release.
Investors include lead investor Venrock, New Enterprise Associates and funds managed by Franklin Advisers, Inc., RA Capital Management and Tekla Life Sciences Investors.
Settlement is expected June 16.
Proceeds will be used for working capital and clinical development of bucindolol, including Genetic-AF, the ongoing Phase 2B/3 trial for the prevention of atrial fibrillation.
Arca is a Westminster, Colo., biopharmaceutical company.
| Issuer: | Arca Biopharma, Inc.
|
| Issue: | Units of one common share and 0.4 warrants
|
| Amount: | $37 million
|
| Units: | 42,021,579
|
| Price: | $0.8805
|
| Warrants: | 0.4 warrants per unit
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.8716
|
| Agent: | MTS Securities, LLC
|
| Investors: | Venrock (lead), New Enterprise Associates, funds managed by Franklin Advisers, Inc., RA Capital Management, Tekla Life Sciences Investors
|
| Pricing date: | June 10, after the close
|
| Settlement date: | June 16
|
| Stock symbol: | Nasdaq: ABIO
|
| Stock price: | $0.85 at close June 9
|
| Market capitalization: | $18.73 million
|
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