By Devika Patel
Knoxville, Tenn., Aug. 5 - Acadia Pharmaceuticals Inc. said it secured a $60 million equity financing facility agreement with Kingsbridge Capital Ltd.
Under the terms of the agreement, Acadia has access, at its discretion, to up to $60 million in capital from Kingsbridge through the sale of newly-issued common shares.
The funds that can be raised over the three-year term will depend on the then-current price for Acadia's stock and the number of shares actually sold, which may not exceed an aggregate of approximately 7 million shares.
Acadia is not obligated to use any of the $60 million and there are no minimum commitments or minimum use penalties.
Acadia may access capital in tranches up to a maximum of between 2% and 3.5% of its market capitalization at the time of the drawdown of each tranche, subject to certain conditions, including a minimum share price threshold.
Kingsbridge may purchase shares at discounts ranging from 6% to 12%, depending on the average market price of Acadia's common stock during the applicable pricing period.
Kingsbridge also received a warrant for 350,000 shares. The warrant is exercisable at a 25% premium to the average closing price of Acadia's common stock for the five days preceding the signing of the agreement.
San Diego-based Acadia is a biopharmaceutical company developing novel treatments for central nervous system disorders.
| Issuer: | Acadia Pharmaceuticals Inc.
|
| Issue: | Committed equity financing facility
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| Amount: | $60 million
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| Tenor: | Three years
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| Price: | Discounts ranging from 6% to 12%
|
| Warrants: | For 350,000 shares
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| Warrant strike price: | 25% premium to the average closing price of the common stock for the five days preceding the agreement
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| Investor: | Kingsbridge Capital Ltd.
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| Pricing date: | Aug. 5
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| Stock symbol: | Nasdaq: ACAD
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| Stock price: | $2.81 at close Aug. 4
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