Avanir gets $4.2 million from exercise of warrants

By Jennifer Chiou

New York, Feb. 6 - Avanir Pharmaceuticals said it obtained $4,210,178 after a majority of the holders of its class A warrants exercised their option to purchase 601,454 shares at $7.00 each.

The company said it expects that the remaining warrants in the series, representing 95,642 shares, will be exercised prior to 5 p.m. ET on Feb. 7, the expiration of the redemption period.

Avanir added the redemption period was triggered when its stock traded above $14.00 per share.

The class A warrants exercised were originally issued in December 2003 in an equity financing that raised about $8 million in working capital.

Avanir said that with the exercise of the class A warrants, it has one outstanding series of warrants, representing the right to purchase up to 271,318 shares at $8.92 per share. The company added it will have the right to redeem any unexercised warrants for this series if its stock trades above $17.84 per share for a period of 25 consecutive trading days.

San Diego-based Avanir is focused on therapeutic products for the treatment of chronic diseases, including central nervous system and cardiovascular disorders, inflammation and infectious diseases. It previously announced positive results in the second of two required phase 3 clinical trials of Neurodex for the involuntary emotional expression disorder.

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