>>HAYWARD, Calif., March 11 /PRNewswire-FirstCall/ -- Aradigm Corporation (Nasdaq: ARDM - News) today announced that the company closed and funded its $15 million private placement financing on March 10, 2003. Further, the company received a majority approval of the transaction at a Special Meeting of shareholders held on March 7, 2003. This financing was through the sale of approximately 19.0 million shares at a negotiated price of $0.79 per share and was with a group of private investors including New Enterprise Associates, a leading venture capital partnership, and Special Situations Funds, as well as members of Aradigm's senior management.
"We are very pleased to have completed this financing under these difficult economic conditions and in the vote of confidence that this shows in Aradigm's future by these investors," said Richard Thompson, President and CEO of Aradigm. "We have taken measures to control our use of cash, such that this investment, in addition to the commitments already made from our pulmonary insulin partner, Novo Nordisk, should provide sufficient cash to take us well into 2004."
As previously announced, the proceeds from this financing will be designated to advance core development programs, reinforce working capital, and enhance manufacturing and general operations. The Company will also issue warrants to purchase approximately 4.3 million shares of common stock at $1.07 per share, representing a 33 percent premium to the Nasdaq National Market price on the commitment date. The Company has also agreed to reprice warrants to purchase 4.0 million shares of common stock currently outstanding from $6.97 per share to $1.12 per share, subject to a cash-only exercise.<<
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Sigh.
Cheers, Tuck |
