Three-year $60 million agreement was inked in August 2008
By Devika Patel
Knoxville, Tenn., Sept. 24 - Acadia Pharmaceuticals Inc. amended a $60 million equity financing facility agreement it negotiated with Kingsbridge Capital Ltd., according to an 8-K filed Friday with the Securities and Exchange Commission. The original agreement was reached in August 2008, and the amendment was made on Sept. 21.
Under the terms of the new agreement, the minimum volume-weighted average price used to set the price for the common-stock sales has been revised to $0.90 per share.
As previously reported, 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.
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 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.
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| 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%
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| 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, 2008
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| Stock symbol: | Nasdaq: ACAD
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| Stock price: | $2.81 at close Aug. 4, 2008
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| Market capitalization: | $37.6 million
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