Convertible loan financing with BioMarin funds development of Firdapse
By Devika Patel
Knoxville, Tenn., Oct. 31 - Catalyst Pharmaceutical Partners, Inc. negotiated a $5 million convertible loan financing with BioMarin Pharmaceutical Inc. on Oct. 26, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The loan will automatically convert into common stock at a conversion price equal to the "dollar-weighted average price" of the stock for the 15 business days preceding the conversion date, multiplied by 0.9, with a floor of $0.75 per share and a ceiling of $2.50 per share.
The company will use the $5 million solely for developing Firdapse, a Phase III orphan drug for the treatment of Lambert-Eaton Myasthenic Syndrome, which is a rare, debilitating and sometimes fatal autoimmune disease.
Catalyst is a Coral Gables, Fla.-based specialty pharmaceutical company.
| Issuer: | Catalyst Pharmaceutical Partners, Inc.
|
| Issue: | Convertible loan
|
| Amount: | $5 million
|
| Conversion price: | The dollar-weighted average price of the stock for the 15 business days preceding the conversion date, multiplied by 0.9, floor of $0.75 and ceiling of $2.50
|
| Warrants: | No
|
| Investor: | BioMarin Pharmaceutical Inc.
|
| Settlement date: | Oct. 26
|
| Stock symbol: | OTCBB: CPRX
|
| Stock price: | $1.63 at close Oct. 25
|
| Market capitalization: | $47.03 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
