Deal with Tang Capital, RTW Investments expected to settle April 11
By Devika Patel
Knoxville, Tenn., April 4 - Galena Biopharma, Inc. amended its $1.5 million loan agreement with Tang Capital Partners, LP and RTW Investments, LLC on April 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The loan was negotiated on Sept. 24.
The loan will now settle on April 11, 2012, which will also be the maturity date of the outstanding $500,000 convertible promissory note held by the investors.
The loan, which is evidenced by three planned $500,000 tranches of 7% secured convertible promissory notes, may be converted into preferreds at a conversion price of $1,000 per preferred. The first $500,000 tranche settled on Sept. 24.
Proceeds will be used for the company's business and operations.
Galena, formerly RXi Pharmaceuticals Corp., is a biotechnology company based in Lake Oswego, Ore.
| Issuer: | Galena Biopharma, Inc.
|
| Issue: | Loan
|
| Amount: | $1.5 million
|
| Coupon: | 7%
|
| Conversion price: | $1,000 (per preferred)
|
| Warrants: | No
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| Pricing date: | Sept. 24
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| Settlement dates: | Sept. 24 (for $500,000), April 11
|
| Stock symbol: | Nasdaq: RXII
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| Stock price: | $0.99 at close Sept. 23
|
| Market capitalization: | $29.81 million
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