Maxim assists; investors receive warrants for 99.05 million shares
By Toni Weeks
San Diego, Dec. 19 - Arno Therapeutics, Inc. settled the second tranche of a $14.86 million private placement of 8% senior convertible debentures on Dec. 18, raising an additional $2,152,000, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Maxim Group LLC served as the placement agent for insiders and institutional investors.
The debentures from the second tranche are due Dec. 18, 2015. Those from the first tranche have a maturity date of Nov. 26, 2015.
The debentures are initially convertible into common stock at $0.30 per share. The company may also force conversion under certain circumstances.
The second-tranche investors also received warrants for 14,348,002 shares.
The investors for the first tranche received two series of warrants. The five-year warrants are exercisable for 42.35 million shares at $0.50 per share, and the 18-month warrants are exercisable for 42.35 shares at $0.30 per share.
The strike prices are identical and a 40% discount to the Nov. 23 closing share price of $0.50. The conversion price is a 40% discount to that price.
Proceeds will be used for research and development activities for the onapristone and AR-42 oncology therapeutic program.
Based in Parsippany, N.J., Arno is a clinical-stage biopharmaceutical company focused on developing oncology therapeutics.
| Issuer: | Arno Therapeutics, Inc.
|
| Issue: | Senior convertible debentures
|
| Amount: | $14,857,000
|
| Maturity: | Nov. 26, 2015 (first tranche), Dec. 18, 2015 (second tranche)
|
| Coupon: | 8%
|
| Conversion price: | $0.30
|
| Call: | Yes
|
| Warrants: | For 99,048,002 shares
|
| Warrant expiration: | Five years (for 42.35 million shares), 18 months (for 42.35 million shares)
|
| Warrant strike price: | $0.50 (for 42.35 million shares), $0.30 (for 42.35 million shares)
|
| Agent: | Maxim Group LLC
|
| Settlement dates: | Nov. 26 (for $12,705,000), Dec. 18 (for $2,152,000)
|
| Stock symbol: | OTCBB: ARNI
|
| Stock price: | $0.50 at close Nov. 23
|
| Market capitalization: | $18.17 million
|
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