By Sheri Kasprzak
New York, Feb. 2 - Tapestry Pharmaceuticals, Inc. said it has entered into agreements with institutional investors for a $25.5 million private placement.
The investors, including Special Situations Fund, Tang Capital Partners LP and Baker Brothers Investments, intend to buy 12.75 million shares at $2.00 apiece on a post-split basis.
Tapestry will conduct a 1-for-10 reverse stock split.
The investors will also receive warrants for 12.75 million shares, exercisable at $2.40 each for five years.
Reedland Capital Partners was the placement agent.
Proceeds from the placement will be used to support clinical trials of the company's TPI 287 product used to inhibit the growth of cancer cells.
Boulder, Colo.-based Tapestry develops treatments for cancer.
| Issuer: | Tapestry Pharmaceuticals, Inc.
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| Issue: | Stock
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| Amount: | $25.5 million
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| Shares: | 12.75 million
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| Price: | $2.00
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| Warrants: | For 12.75 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.40
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| Placement agent: | Reedland Capital Partners
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| Investors: | Special Situations Fund, Tang Capital Partners LP and Baker Brothers Investments
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| Announcement date: | Feb. 2
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| Stock symbol: | Nasdaq: TPPH
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| Stock price: | $0.34 at close Feb. 2
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