Investors also receive two series of warrants for 84.7 million shares
By Devika Patel
Knoxville, Tenn., Nov. 27 - Arno Therapeutics, Inc. concluded a $12.71 million private placement of 8% senior convertible debentures on Nov. 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The three-year debentures are initially convertible into common stock at $0.30 per share. The company may also force conversion under certain circumstances.
The investors also received two series of warrants. The five-year warrants are exercisable for 42.35 million shares at $0.50 per share, and the 18-month warrants are exercisable for 42.35 shares at $0.30 per share.
The strike prices are identical and a 40% discount to the Nov. 23 closing share price of $0.50. The conversion price is a 40% discount to that price.
Proceeds will be used for research and development activities for the onapristone and AR-42 oncology therapeutic program.
Based in Parsippany, N.J., Arno is a clinical-stage biopharmaceutical company focused on developing oncology therapeutics.
| Issuer: | Arno Therapeutics, Inc.
|
| Issue: | Senior convertible debentures
|
| Amount: | $12,705,000
|
| Maturity: | Nov. 26, 2015
|
| Coupon: | 8%
|
| Conversion price: | $0.30
|
| Call: | Yes
|
| Warrants: | For 84.7 million shares
|
| Warrant expiration: | Five years (for 42.35 million shares), 18 months (for 42.35 million shares)
|
| Warrant strike price: | $0.50 (for 42.35 million shares), $0.30 (for 42.35 million shares)
|
| Settlement date: | Nov. 26
|
| Stock symbol: | OTCBB: ARNI
|
| Stock price: | $0.50 at close Nov. 23
|
| Market capitalization: | $18.17 million
|
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