Deal will span two years, funds working capital and corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 3 – Recro Pharma, Inc. negotiated a $10 million two-year common stock purchase agreement with Aspire Capital Fund, LLC on Feb. 2, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Aspire will buy company shares in tranches of up to 50,000 common shares per trading day or up to $500,000 or up to 30% of the shares traded on the next trading day. The purchase price will be equal to the lesser of the lowest sale price of the common stock on the purchase date or the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive trading days preceding the purchase.
Proceeds will be used for working capital and general corporate purposes.
The clinical-stage specialty pharmaceutical company is based in Malvern, Pa.
| Issuer: | Recro Pharma, Inc.
|
| Issue: | Common stock purchase agreement
|
| Amount: | $10 million
|
| Tenor: | Two years
|
| Price: | The lesser of the lowest sale price of the common stock on the purchase date or the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive trading days preceding the purchase
|
| Warrants: | No
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| Investor: | Aspire Capital Fund, LLC
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| Settlement date: | Feb. 2
|
| Stock symbol: | Nasdaq: REPH
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| Stock price: | $3.05 at close Jan. 30
|
| Market capitalization: | $24.05 million
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