Proceeds to be used to advance three clinical-stage compounds
By Angela McDaniels
Tacoma, Wash., Sept. 13 - Arno Therapeutics, Inc. said it closed a private placement of units resulting in proceeds of more than $15 million.
The company sold units consisting of approximately 15.1 million shares of series A convertible preferred stock and warrants to purchase approximately 7.6 million additional preferreds, according to a company news release.
Each unit sold for $1.00.
Warrants to purchase approximately 1.2 million preferreds are exercisable for 2.5 years at $1.00 per preferred. The remainder of the warrants are exercisable for five years at $1.15 per preferred.
The exercise prices represent premiums of 96.08% and 125.49%, respectively, to the closing stock price of $0.51 on Sept. 12.
Arno has agreed to file a registration statement covering the resale of common stock issuable upon conversion of the preferreds. Once this registration become effective, the preferreds will automatically convert into common stock and the warrants will convert to warrants to purchase common stock.
Riverbank Capital Inc. was the placement agent. The lead investors were UTA Capital, LLC and Pontifax Funds.
The proceeds of the financing will be used to advance Arno's three clinical-stage compounds, AR-12, AR-67 and AR-42.
Arno is a clinical-stage biopharmaceutical company focused on developing oncology therapeutics. It is based in Parsippany, N.J.
| Issuer: | Arno Therapeutics, Inc.
|
| Issue: | Units of series A convertible preferred stock and warrants to purchase additional preferreds
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| Amount: | Approximately $15 million
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| Preferreds: | Approximately 15.1 million
|
| Price: | $1.00
|
| Warrants: | For approximately 7.6 million preferreds
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| Warrant expiration: | 2.5 years (for 1.2 million), five years (for 6.4 million)
|
| Warrant strike prices: | $1.00 (for 1.2 million), $1.15 years (for 6.4 million)
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| Agent: | Riverbank Capital Inc.
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| Investors: | UTA Capital, LLC and Pontifax Funds (lead investors)
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| Settlement date: | Sept. 13
|
| Stock symbol: | Pink Sheets: ARNI
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| Stock price: | $0.51 at close Sept. 12
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