By Sheri Kasprzak
New York, Dec. 19 - Inovio Biomedical Corp. said it has received definitive agreements from institutional investors and Merck & Co. Inc. for a $15.8 million private placement.
The investors will buy 6,583,333 shares at $2.40 each and will also receive warrants for 35% of the shares purchased.
The warrants are exercisable for five years at $2.93 each, a 25% premium to the company's closing stock price of $2.35 on Dec. 15.
Separately from the private placement, Inovio will be issuing common shares and warrants on the same terms as the offering in exchange for preferred shares. Gross cash proceeds from that transaction will total $2.43 million due from one investor as part of a commitment made and a promissory note delivered to Inovio in January 2005.
Proceed swill be used for clinical trials on the company's lead product, as well as for working capital and general corporate purposes.
Based in San Diego, Inovio is biotechnology company focused on the commercialization of cancer therapies.
| Issuer: | Inovio Biomedical Corp.
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| Issue: | Stock
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| Amount: | $15.8 million
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| Shares: | 6,583,333
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| Price: | $2.40
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| Warrants: | For 35% of the shares purchased
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.93
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| Investors: | Merck & Co. Inc., institutional investors
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| Announcement date: | Dec. 19
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| Stock price: | $2.35 at close Dec. 16
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