The details of the financing, fom an 8-K filed this morning:
>> Entry into a Material Definitive Agreement.
On December 13, 2005, Discovery Laboratories, Inc. (the “Company”) entered into subscription agreements with selected institutional investors relating to a registered direct offering of 3,030,304 shares of the Company’s common stock. The Company will sell the shares of common stock to the investors at a price of $6.60 per share for gross proceeds of approximately $20.0 million. The closing of the offering is expected to take place on December 19, 2005, subject to the satisfaction of customary closing conditions. The Company expects to receive approximately $18,915,000 in net proceeds, after deducting the placement agent fee and other fees and expenses of the offering.
The common stock will be issued pursuant to a prospectus supplement filed with the Securities and Exchange Commission pursuant to Rule 424(b)(5) of the Securities Act of 1933, as amended. The issuance is a shelf takedown from the Company’s registration statement on Form S-3 (File No. 333-128929), which was declared effective by the Securities and Exchange Commission on October 24, 2005.
The Company also entered into a related Placement Agent Agreement with SG Cowen & Co., LLC, who is acting as exclusive placement agent for the offering, and the Company has agreed to pay the placement agent a fee of 4.75% of the gross proceeds.<<
I have a position via sold puts. Interestingly, I bought in at the same price as these guys, so I'm still showing a profit, but it just got a lot smaller, leaving me wishing that they had done this next week. C'est larvae . . .
Cheers, Tuck |
