Deal includes warrants; proceeds fund clinical, marketing activities
By Devika Patel
Knoxville, Tenn., Jan. 19 – CASI Pharmaceuticals Inc. said it raised $10.27 million in the first tranche of a $25.1 million private placement of stock. The deal priced on Sept. 21.
The company is selling 20,658,434 common shares at $1.19 per share, which is identical to the Sept. 18 closing share price.
The investors also will receive three-year warrants for 4,131,686 shares at a purchase price of $0.125 per warrant. Each warrant is exercisable at $1.69, a 42.02% premium to the Sept. 18 closing price.
In the initial tranche, CASI sold 8,448,613 shares and issued warrants for 1,689,722 shares.
Proceeds will be used for clinical and regulatory activities, to expand the company’s product pipeline, for marketing and commercial planning activities, to accelerate product and business development activities and for other general corporate purposes.
The biopharmaceutical company is based in Rockville, Md.
| Issuer: | CASI Pharmaceuticals Inc.
|
| Issue: | Common shares
|
| Amount: | $25.1 million
|
| Shares: | 20,658,434
|
| Price: | $1.19
|
| Warrants: | For 4,131,686 shares
|
| Warrant price: | $0.125
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.69
|
| Pricing date: | Sept. 21
|
| Settlement date: | Jan. 19 (for $10,265,065)
|
| Stock symbol: | Nasdaq: CASI
|
| Stock price: | $1.19 at close Sept. 18
|
| Market capitalization: | $21.09 million
|
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