Gentleman,
We have a new trading range for a while, as defined by . . .
>>HAYWARD, Calif., Dec. 12 /PRNewswire/ -- Aradigm Corporation (Nasdaq: ARDM - news) today announced the completion of a $48.4 million Series A Convertible Preferred Stock financing. The financing was provided by a select group of investors led by New Enterprise Associates and including Camden Partners, Castle Creek Partners and Domain Public Equity Partners, L.P. SG Cowen Securities Corporation served as placement agent for the transaction.
Under the terms of the financing, Aradigm sold approximately 2,001,236 shares of Series A Convertible Preferred Stock at $24.20 per share. Each share of preferred stock is convertible into four shares of common stock. The conversion rate is fixed and not subject to any adjustments other than for stock splits, stock dividends and other similar events. The company also issued warrants to the investors to purchase 5,203,212 shares of common stock at an exercise price of $6.97 per share. The preferred stock will convert automatically into common stock either when the company completes an underwritten public offering of at least $25 million or when the stock has been at or above $10.59 per share for 20 consecutive trading days.
The proceeds from this funding activity will be used to fund additional research and development, expansion of manufacturing capacity, operating expenses and other corporate activities. Combined with previously completed financings, Aradigm has raised in excess of $105 million in capital and capital commitments over the last four months.
``We are delighted to have been able to raise this capital during a very selective market under what we believe are reasonable terms for our shareholders. This capital provides us with the financial resources required to conduct current and near-term development programs. We have nearly completed Phase 2b testing with the AERx® Pain Management System and have recently announced the completion of Phase 2b trials with the AERx insulin Diabetes Management System (iDMS) with our partner Novo Nordisk,'' said Richard Thompson, president and chief executive officer of Aradigm Corporation.
In connection with the financing, John M. Nehra, Special Partner of New Enterprise Associates, will be joining Aradigm's board of directors. Mr. Nehra has been a partner at New Enterprise Associates for the past 11 years where he directs investments in the healthcare sector. He is also a director of DaVita (Nasdaq: DVA - news), Iridex (Nasdaq: IRIX - news) and several privately-held companies.
John M. Nehra commented, ``I have been extremely impressed with the quality of Aradigm's management team and its close working relationship with the company's insulin partner, Novo Nordisk. I am enthusiastic about Aradigm's platform technology for pulmonary drug delivery, beginning with inhaled insulin and morphine and extending to additional promising therapeutic compounds.''<<
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Cheers, Tuck |
