Pharming completes a private placement raising €3.2 million
Pharming Group NV announced that it has completed a financing of €3.2 million adding new US based specialist investors.
Upon the closing of the transaction, Pharming will receive gross proceeds of approximately €3.2 million in exchange for the issuance of 29,000,000 shares of Pharming common stock. Warrants to purchase 20,300,000 shares of Pharming common stock have also been issued, subject to shareholder approval of an increase of the authorized share capital no later than at the AGM in 2012. The warrants are exercisable for a period of 5 years starting on the first anniversary of the increase of the authorized share capital (i.e. no later than May 2013) at an exercise price of €0.11 per share. Under the agreement the new investors were granted a Right of First Refusal to participate in potential additional follow-on offerings of equity during the upcoming 6 months.
The new funds from this transaction strengthen the balance sheet and enable the Company to extend its cash runway into the second quarter of 2012. This guidance excludes any additional cash inflows from further partnering agreements on Rhucin and the transgenic platform and the continuing roll- out of Ruconest in Europe. In addition, upon completion of certain clinical, regulatory and commercial milestones related to progress with Rhucin in the USA, Pharming will become entitled to up to US$35 million in future milestone payments from its US partner Santarus Inc.
With the closing of this transaction, the number of Pharming shares outstanding has been increased from 461,116,470 to 490,116,470.
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