By Devika Patel
Knoxville, Tenn., Aug. 6 - NPS Pharmaceuticals Inc. negotiated a $40 million 18-month committed equity financing facility with Azimuth Opportunity Ltd. on Wednesday, according to an 8-K filed Thursday with the Securities and Exchange Commission.
From time to time, NPS may present Azimuth with drawdown notices to purchase common shares over 10 consecutive trading days or such other period mutually agreed upon by both sides.
Each drawdown is subject to limitations based on the price of the common shares and a limit of 2.5% of NPS' market capitalization at the time of the drawdown, provided, however, Azimuth will not be required to invest more than $7.25 million in any single drawdown.
The company may present Azimuth with up to 24 drawdown notices during the term of the agreement, with a minimum of five trading days required between each drawdown period.
The per-share purchase price for these shares equals the daily volume-weighted average price of the common shares on each date during the drawdown period on which shares are purchased, less a discount ranging from 3.25% to 5%.
NPS is a biopharmaceutical company based in Parsippany, N.J.
| Issuer: | NPS Pharmaceuticals Inc.
|
| Issue: | Committed equity financing facility
|
| Amount: | $40 million
|
| Tenor: | 18 months
|
| Price: | Discounts to VWAP ranging from 3.25% to 5%
|
| Warrants: | No
|
| Investor: | Azimuth Opportunity Ltd.
|
| Settlement date: | Aug. 5
|
| Stock symbol: | Nasdaq: NPSP
|
| Stock price: | $3.98 at close Aug. 5
|
| Market capitalization: | $212 million
|
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