By Laura Lutz
Des Moines, Jan. 30 - Artes Medical, Inc. arranged a private placement of $6.5 million private placement of a senior secured note and warrants, according to an 8-K filing with the Securities and Exchange Commission.
Cowen Healthcare Royalty Partners, LP will buy the note in connection with a $21.5 million investment that it agreed to make in Artes. That deal also provides for an additional investment of up to $1 million in 2009 if Artes satisfies a net product sales milestone.
The note will mature in five years and bear interest at 10% per year. Interest will be payable monthly.
Along with the note, Cowen will receive a five-year warrant for 1.3 million shares, exercisable at $5.00 per share.
Cowen will also receive a five-year warrant for 375,000 shares as part of the larger financing deal. That warrant will be exercisable at $3.13 per share.
Artes may prepay all or part of the note at a premium.
The financing is expected to settle in mid-February.
Proceeds will be used to expand Artes's sales force and consumer outreach programs and to pay off and terminate its existing credit facility with Comerica Bank.
Artes is a San Diego-based medical technology company focused on injectable products for dermatology and plastic surgery.
$6.5 million placement
| Issuer: | Artes Medical, Inc.
|
| Issue: | Senior secured note
|
| Amount: | $6.5 million
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | For 1.3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.00
|
| Investor: | Cowen Healthcare Royalty Partners, LP
|
| Pricing date: | Jan. 28
|
| Stock symbol: | Nasdaq: ARTE
|
| Stock price: | $2.42 at close Jan. 28
|
|
|
| Warrants in $21.5 million deal
|
| Issuer: | Artes Medical, Inc.
|
| Issue: | Warrants
|
| Warrants: | For 375,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.13
|
| Investor: | Cowen Healthcare Royalty Partners, LP
|
| Pricing date: | Jan. 28
|
| Stock symbol: | Nasdaq: ARTE
|
| Stock price: | $2.42 at close Jan. 28
|
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