Spectrum Pharmaceuticals, a commercial-stage biotechnology company with a focus in oncology, has received commitments from three institutional investors, led by Federated Kaufmann Fund,
Spectrum Pharmaceuticals, a commercial-stage biotechnology company with a focus in oncology, has received commitments from three institutional investors, led by Federated Kaufmann Fund, to purchase USD20m of securities in a registered direct offering.
Spectrum expects to receive net proceeds of approximately USD19m after deducting placement agent fees and other offering expenses.
Under the terms of a securities purchase agreement, Spectrum will sell an aggregate of 3,913,894 shares of its common stock and warrants to purchase up to 1,956,947 additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase approximately one-half of a share of common stock, will be sold for a purchase price of USD5.11, which is equal to the closing bid price of the company’s common stock on 26 May 2009.
The warrants to purchase additional shares will be exercisable at an exercise price of USD5.11 per share beginning six months after issuance and will expire 90 days from the date they are first exercisable.
All of the securities were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes. The offering is expected to be consummated no later than 29 May 2009, subject to customary closing conditions.
