By Devika Patel
Knoxville, Tenn., Aug. 16 - ARYx Therapeutics, Inc. negotiated a $4 million private placement of 12% secured promissory notes on Aug. 13, according to an 8-K filed Monday with the Securities and Exchange Commission. It sold $2 million of the notes at pricing.
The note is due Jan. 1, 2013.
The investors also received warrants for 1 million common shares, which are exercisable at $0.50 for five years. The strike price represents a 16.28% premium to the $0.43 closing share price on Aug. 12. Investors will receive warrants for an additional 1 million common shares in a second tranche, expected to settle by Sept. 15. The warrants have a purchase price of $0.0125 per underlying share.
Investors included affiliates of MPM Capital and Ayer Capital Management, LP.
Proceeds will be used for debt repayment, working capital and other corporate and operational purposes.
Based in Fremont, Calif., ARYx Therapeutics is a biopharmaceutical company.
| Issuer: | ARYx Therapeutics, Inc.
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| Issue: | Secured promissory notes
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| Amount: | $4 million
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| Maturity: | Jan. 1, 2013
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| Coupon: | 12%
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| Price: | Par
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| Yield: | 12%
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| Warrants: | For 2 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.50
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| Investors: | MPM Capital and Ayer Capital Management, LP
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| Settlement date: | Aug. 13 (for $2 million), Sept. 15
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| Stock symbol: | Nasdaq: ARYX
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| Stock price: | $0.46 at close Aug. 13
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| Market capitalization: | $14.41 million
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