By Sheri Kasprzak
New York, Nov. 14 - World Heart Corp. is gearing up to complete a $14.1 million private placement.
The company plans to sell 56.4 million shares at $0.25 each to existing and new investors including Maverick Ventures Management, LLC; Special Situations Fund; Medical Strategy; Greenway Capital; and members of World Heart's management.
The price per share represents a 51% discount to the company's $0.51 closing stock price on Monday.
The first tranche of the deal, for $2.8 million, will close later this week. The remaining portion, for $11.3 million, will close in December.
Proceeds from the deal will fund operations through the initiation of U.S. clinical trials for the company's products in 2007 and into the second quarter of 2008.
In other news, World Heart said it plans to restructure and realign its business to control spending. The company intends to reduce manufacturing costs associated with its Novacor left-ventricle assist system product due to decreased demand.
World Heart, based in Oakland, Calif., develops mechanical circulatory support systems.
| Issuer: | World Heart Corp.
|
| Issue: | Stock
|
| Amount: | $14.1 million
|
| Shares: | 56.4 million
|
| Price: | $0.25
|
| Warrants: | No
|
| Investors: | Maverick Ventures Management, LLC; Special Situations Fund; Medical Strategy; Greenway Capital; management
|
| Announcement date: | Nov. 14
|
| Stock symbol: | Nasdaq: WHRT
|
| Stock price: | $0.51 at close Nov. 13
|
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