By Devika Patel
Knoxville, Tenn., March 27 - Avanir Pharmaceuticals, Inc. announced that a group of institutional investors led by ProQuest Investments and joined by Clarus Ventures, Vivo Ventures and OrbiMed Advisors has committed to buy $40 million of Avanir's common stock and warrants in a direct offering.
The investors will buy 34,972,678 shares at $1.14375 per share, along with 35% warrant coverage, or warrants for 12.25 million shares. The warrants are exercisable at $1.43 for five years.
Piper Jaffray & Co. is the agent for the deal, which is expected to settle on April 4. The deal is being conducted under the company's S-3 shelf registrations from Aug. 3, 2005 and Feb. 8.
Proceeds will be used to complete the confirmatory phase 3 STAR trial of the investigational drug Zenvia and for general working capital.
Based in San Diego, Avanir develops therapeutic treatments for central nervous system disorders.
| Issuer: | Avanir Pharmaceuticals, Inc.
|
| Issue: | Common stock, warrants
|
| Amount: | $40 million
|
| Shares: | 34,972,678
|
| Price: | $1.14375
|
| Warrants: | For 12.25 million shares, or 35% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.43
|
| Agent: | Piper Jaffray & Co.
|
| Investors: | ProQuest Investments (lead), Clarus Ventures, Vivo Ventures, OrbiMed Advisors
|
| Pricing date: | March 27
|
| Settlement date: | April 4
|
| Stock symbol: | Nasdaq: AVNR
|
| Stock price: | $1.11 at close March 26
|
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