By Abigail W. Adams
Portland, Me., June 22 – Matinas BioPharma Holdings Inc. priced $8 million in series B convertible preferred stock after the market close on Thursday, according to a company news release.
ThinkEquity, a division of Fordham Financial Management Inc., was placement agent for the registered offering.
Each share of par of $1,000 convertible preferred stock will be convertible into 2,000 shares of common stock at a conversion price of 50 cents per share. A total of 16 million shares underlies the preferred stock.
Dividends will be paid in common stock at a rate of 10% of the underlying shares in the first year.
Dividend payments will increase on the two-year anniversary of the filing date to 15% of the underlying shares, also payable in stock.
On the three-year anniversary, payment will increase to 20% of the shares underlying the convertible preferreds, according to the 424B5 filing.
The series B convertible preferreds will automatically convert on the earlier of either Federal Drug Administration approval of one of the company’s product candidates, the consent to conversion by more than 50% of the holders or three years from the registration date.
Officers and directors of the company intend to purchase some convertible preferreds at the public offering price.
Proceeds are expected to be $7.1 million and will be used to support the development of product candidates and for general corporate purposes.
Matinas BioPharma is a Bedminster, N.J.-based biopharmaceutical company.
| Issuer: | Matinas BioPharma Holdings Inc.
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| Securities: | Series B convertible preferred stock
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| Amount: | $8 million or 8,000 shares
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| Maturity: | The earlier of FDA approval, consent of a majority of holders or three years
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| Bookrunners: | ThinkEquity, a division of Fordham Financial Management Inc.
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| Dividend: | Paid as the number of shares of common stock equal to 10% of the underlying shares in the convertible preferreds in year one, 15% in year two and 20% in year three
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| Price: | Par of $1,000
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| Conversion premium: | 0%
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| Conversion price: | 50 cents
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| Conversion rate: | 2,000
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| Pricing date: | June 21
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| Settlement date: | June 21
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| Stock symbol: | NYSEAmerican: MTNB
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| Stock price: | 50 cents at market close June 21
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| Market capitalization: | $46.74 million
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