By Sheri Kasprzak
New York, Oct. 26 - Arrowhead Research Corp. settled a $10 million private placement for wholly owned subsidiary Insert Therapeutics, Inc.
The company issued 10 million units in the deal. Each unit consists of one share of series C-2 preferred stock and 40% warrant coverage. The unit price represents a 78.3% discount to the company's $4.611 closing stock price on Wednesday.
Each warrant is exercisable at $1.25 each through July 1, 2007.
The offering includes a $5 million follow-on investment made by Arrowhead itself.
Proceeds will be used for clinical work on the company's IT-101 lead anti-cancer drug currently in phase 1 and the development of other therapeutic candidates in the company's pipeline.
Based in Pasadena, Calif., Arrowhead is a nanotechnology company focused on developing products for the life sciences, electronics and energy sectors.
| Issuer: | Arrowhead Research Corp.
|
| Issue: | Units of one share of series C-2 preferred stock and 40% warrant coverage
|
| Amount: | $10 million
|
| Units: | 10 million
|
| Price: | $1.00
|
| Warrants: | A number of common shares equal to 40% of preferreds issued in each unit
|
| Warrant expiration: | July 1, 2007
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| Warrant strike price: | $1.25
|
| Settlement date: | Oct. 26
|
| Stock symbol: | Nasdaq: ARWR
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| Stock price: | $4.611 at close Oct. 25
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