By Jennifer Chiou
New York, March 4 - BioSante Pharmaceuticals, Inc. said it received commitments from two institutional investors to purchase $18 million of units in a registered direct offering.
The investors are Great Point Partners, LLC and Deerfield Management Co.
Each unit consists of one common share and a half-share warrant and has a purchase price of $1.73.
The company will sell roughly 10.4 million shares and warrants for up to 5.2 million additional shares. The warrants are exercisable at $2.08 for five years.
Rodman & Renshaw, LLC is the agent.
Settlement is expected on March 8. The expected $17.5 million of net proceeds will be used for clinical studies and general corporate purposes.
"This additional funding from these two high quality institutional investors provides us with a strong cash cushion ensuring our ongoing focus on our LibiGel phase 3 clinical study program," Stephen M. Simes, BioSante's president and chief executive officer, said in a news release.
Based in Lincolnshire, Ill., BioSante is a biotechnology company focused on hormone therapies.
| Issuer: | BioSante Pharmaceuticals, Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Investor: | Great Point Partners, LLC and Deerfield Management Co.
|
| Amount: | $18 million
|
| Units: | 10.4 million
|
| Price: | $1.73
|
| Warrants: | One warrant for a half-share per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.08
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | March 3
|
| Settlement date: | March 8
|
| Stock symbol: | Nasdaq: BPAX
|
| Stock price: | $1.73 at close March 3
|
| Market capitalization: | $92.9 million
|
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