New York, May 15 - Life Therapeutics announced it has obtained A$35.3 million of financing from Cornell Capital Partners Offshore LP.
Included in the transaction are a $4 million convertible note and a A$30 million standby equity line of credit.
The convertible note pays an 8% coupon and matures in 360 days. The conversion price is A$2.12, a 25% premium to the volume weighted average price of Life Therapeutics' stock for the five days from May 8 to May 12.
The equity line runs for five years. Shares can be issued in tranches of A$450,000 in any five days at a price of the lowest volume weighted average price during any five-day pricing period, less a 3% commission.
Emerging Growth Capital Pty Ltd. arranged the financing.
Proceeds from the convertible will be used to open five new collection centers to meet growing demand for normal source plasma.
The equity line will be used to fund new opportunities as they become available.
Life Therapeutics noted that it had recently announced two long-term contracts to supply normal source plasma to a number of large U.S.-based plasma fractionators. These customers have expressed a willingness to purchase any additional plasma that the company can produce, over and above the contracted volumes.
Life Therapeutics is based in Sydney, Australia, while its four divisions have headquarters in Atlanta. The company collects specialty plasma, offers gels for research and diagnostic testing, provides diagnostic tests for blood-clotting disorders and makes therapeutic and diagnostic products.
| Issuer: | Life Therapeutics
|
| Amount: | A$35.3 million
|
| Placement agent: | Emerging Growth Capital Pty Ltd.
|
| Investor: | Cornell Capital Partners Offshore LP
|
| Announcement date: | May 15
|
| Stock symbol: | Australia: LFE
|
| Stock price: | A$1.70 at close May 15
|
|
|
| Convertible note
|
| Issue: | Convertible note
|
| Amount: | $4 million
|
| Maturity: | 360 days
|
| Coupon: | 8%
|
| Conversion price: | A$2.12
|
| Conversion premium: | 25%
|
|
|
| Equity line
|
| Issue: | Standby equity line of credit
|
| Amount: | A$30 million
|
| Tenor: | 5 years
|
| Share price: | Lowest volume weighted average price during any five-day pricing period, less a 3% commission
|
|
|
© 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.
