Deal includes warrant coverage; proceeds fund Europe launch of Mysimba
By Devika Patel
Knoxville, Tenn., Sept. 10 – Orexigen Therapeutics, Inc. raised $60 million private placement of stock with funds managed by the Baupost Group, LLC on Sept. 10, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company sold 20 million common shares at $3.00 per share, which is a 14.5% premium to the Sept. 9 closing share price of $2.62.
The investors also received five-year warrants for 5 million shares. Each warrant is exercisable at $6.00. The strike price is a 129.01% premium to the Sept. 9 closing price.
Proceeds will be used to initiate a launch of Mysimba in Europe, for acquisitions and general working capital purposes.
San Diego-based Orexigen is a biopharmaceutical company focused on development of treatments of obesity.
Issuer: | Orexigen Therapeutics, Inc.
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Issue: | Common shares
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Amount: | $60 million
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Shares: | 20 million
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Price: | $3.00
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Warrants: | For 5 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $6.00
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Investor: | Baupost Group, LLC
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Settlement date: | Sept. 10
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Stock symbol: | Nasdaq: OREX
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Stock price: | $2.62 at close Sept. 9
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Market capitalization: | $366.15 million
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