By Devika Patel
Knoxville, Tenn., April 30 - Siga Technologies, Inc. extended the term of an $8 million stock purchase agreement with MacAndrews & Forbes LLC on April 29, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal was arranged on June 23.
The commitment period was extended through June 19, 2010 from June 19, 2009, and the new agreement increases the number of tranches to no more than six from up to three tranches.
Siga may require MacAndrews & Forbes to buy up to $8 million in common shares at a purchase price equal to the lesser of $3.06 and the average of the volume-weighted average price per share for the five trading days immediately preceding the purchase date.
As additional consideration for this agreement, with each tranche, the company has agreed to issue a number of warrants for up to 40% of the number of shares sold, with an exercise price equal to 115% of the share purchase price.
Siga may also be required to sell new shares to MacAndrews & Forbes on the same terms.
At closing, MacAndrews & Forbes received 238,000 bonus warrants, which are exercisable at $3.06.
Siga will use the proceeds from these sales to fund its ongoing research and development activities, to enhance its ability to commercialize its products and for general corporate purposes.
Based in New York, Siga applies viral and bacterial genomics and computational modeling to develop novel products to treat infectious diseases, including products for biological warfare.
| Issuer: | Siga Technologies, Inc.
|
| Issue: | Common stock
|
| Amount: | $8 million
|
| Tenor: | Two years
|
| Price: | The lesser of $3.06 and the average of the volume-weighted average price per share for the five trading days immediately preceding the purchase date
|
| Warrants: | For 40% of the shares sold
|
| Warrant strike price: | 115% of the share purchase price
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| Investor: | MacAndrews & Forbes LLC
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| Settlement date: | June 23
|
| Revised: | April 29
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| Stock symbol: | Nasdaq: SIGA
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| Stock price: | $3.27 at close June 20
|
| Market capitalization: | $223 million
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