Synaptic Pharmaceutical Closes $41.0 Million Private Financing Led By Warburg Pincus
PARAMUS, N.J., Sept. 26 /PRNewswire/ -- Synaptic Pharmaceutical Corporation (Nasdaq: SNAP - news) today announced that it has closed the second stage of its $41.0 million private financing led by Warburg Pincus. On August 3, 2001, the Company announced the signing of definitive agreements relating to this financing and the closing of the first stage of the financing.
In the first stage of the convertible preferred stock offering, the Company received $9.4 million. In the second stage, which closed today, the Company raised an additional $31.6 million. In the second stage, which required shareholder approval, the Company issued 5.4 million common share equivalents at an average price of $5.85 per share. With both stages of the financing now complete, Synaptic has issued an additional 7.6 million common share equivalents.
Kathleen P. Mullinix, Ph.D., chairman, president and chief executive officer, stated, ``Synaptic now has the capital, together with the right business strategy, to accelerate its development programs and unlock the value of its G protein-coupled receptor (GPCR) technology estate. The expertise of Warburg Pincus in guiding biopharmaceutical companies and its financial strength will start to allow Synaptic to develop its broad portfolio of GPCR drug discovery programs as we execute our plan to forward integrate our Company. With respect to our most advanced program to develop a novel antidepressant, we remain on track to file an IND in the fourth quarter of this year, and we are planning for our Phase II studies that will determine the efficacy of this novel GPCR mechanism for the treatment of depression.''
In the two stages of the financing, Warburg Pincus purchased $9.4 million of Series B preferred stock and $25.5 million of Series C preferred stock. Ziff Asset Management purchased $1.6 million of Series B preferred stock and $4.4 million of Series C preferred stock. Immediately after the close, and assuming conversion of the preferred stock into common shares, Warburg Pincus and Ziff Asset Management own 34.7% and 6.0%, respectively, of the Company's voting stock. The Company has agreed to register for resale, under the Securities Act of 1933, as amended, common shares issuable upon conversion of the convertible preferred stock deemed issued in the financing... |
