Funding to come in five tranches, with first tranche totaling $500,000
By Marisa Wong
Morgantown, W.Va., Sept. 1 – Opexa Therapeutics, Inc. said it entered into a stock purchase agreement on Tuesday with a private investor for up to $5 million.
The stock sale will fund the company’s NMO program (neuromyelitis optica spectrum disorder, a rare autoimmune disorder). The funding is to be provided in five tranches, based on the successful completion of milestones, with the first tranche having been delivered on the agreement date.
For the first tranche, the company issued 909,090 shares at $0.55 per share for a purchase amount of $500,000.
The first tranche also included a warrant to acquire an equal number of shares with an initial exercise price of $0.50 until June 30, 2016 and an exercise price of $1.50 through its expiration on April 9, 2018.
The initial strike price is a 20.48% premium to the Aug. 31 closing share price.
Subsequent tranches totaling a possible $4.5 million are based on the completion of the ongoing preclinical activities and subsequent submission of an IND for OPX-212 in NMO no later than Feb. 15, 2016; the review and acceptance of the IND by the U.S. Food and Drug Administration no later than May 15, 2016; enrollment of the first patient in a planned phase I/II study no later than Aug. 30, 2016; and enrollment of 30% of the patients in the same phase I/II study no later than Dec. 31, 2016.
Each subsequent tranche will include the sale of common stock only, with the shares priced at 90% of the 10-day volume weighted average price of Opexa’s common stock immediately preceding the occurrence of the related milestone.
Opexa is a biopharmaceutical company developing personalized immunotherapies for autoimmune disorders. The company is based in the Woodlands, Texas.
| Issuer: | Opexa Therapeutics, Inc.
|
| Issue: | Common stock
|
| Amount: | Up to $5 million
|
| Shares: | 909,090 shares for first tranche
|
| Price: | $0.55 per share for first tranche
|
| Warrants: | For 909,090 shares
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| Warrant expiration: | April 9, 2018
|
| Warrant strike price: | $0.50 until June 30, 2016, $1.50 through expiration
|
| Pricing date: | Sept. 1
|
| Settlement date: | Sept. 1 for $500,000
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| Stock symbol: | Nasdaq: OPXA
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| Stock price: | $0.415 at close Aug. 31
|
| Market capitalization: | $22.18 million
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