Deal includes warrants; proceeds fund clinical, marketing activities
By Devika Patel
Knoxville, Tenn., June 28 – CASI Pharmaceuticals Inc. raised $5.84 million in the first tranche of a $25.1 million private placement of stock on June 22, according to an 8-K filing with the Securities and Exchange Commission. The deal priced on Sept. 21 and raised $10.27 million on Jan. 19.
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. It sold 4,906,118 shares and issued warrants for 981,223 shares in the second tranche.
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.
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Issue: | Common shares
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Amount: | $25.1 million
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Shares: | 20,658,434
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Price: | $1.19
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Warrants: | For 4,131,686 shares
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Warrant price: | $0.125
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Warrant expiration: | Three years
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Warrant strike price: | $1.69
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Pricing date: | Sept. 21
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Settlement dates: | Jan. 19 (for $10,265,065), June 22 (for $5,838,280)
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Stock symbol: | Nasdaq: CASI
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Stock price: | $1.19 at close Sept. 18
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Market capitalization: | $46.42 million
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