already down from 49%.....
tmcnet.com
[June 24, 2008]
RXi Follows Public Listing with $8.7M Private Placement
(BioWorld Today Via Acquire Media NewsEdge)
In a deal expected to close today, RXi Pharmaceuticals Corp. is raising $8.7 million through the private placement of 1.1 million shares of common stock priced at $8.12 per share.
The pricing represents about a 10 percent discount to the company's Monday closing price of $9.04 and did not include warrants. That differentiates it from most small-cap biotech PIPEs so far this year, including deals done by La Jolla, Calif.-based Transdel Pharmaceuticals Inc., New York-based Antigenics Inc. and Seattle-based Dendreon Corp., just to name a few.
The financing is RXi's first as a public entity. The company spun-out of CytRx Corp. early last year as an RNAi-focused subsidiary and gained its independence in March through a Nasdaq listing. The public listing was not accompanied by a financing, but interest in the shares was high. On its first day of trading, RXi debuted at $6.01 and skyrocketed up to $23.95 before closing back at $10.50. (See BioWorld Today, Jan. 11, 2007, and March 13, 2008.)
Proceeds from the financing will be used for working capital and other general corporate purposes, such as building the company's pipeline of RNAi compounds for potential alliances, internal development and collaborations. That pipeline currently includes preclinical programs for familial amyotrophic lateral sclerosis, obesity, diabetes, oncology and cytomegalovirus-related disorders.
Jefferies & Co. Inc. acted as the lead placement agent for the financing, with Natixis Bleichroeder Inc., Broadpoint Securities Group Inc. and Griffin Securities Inc. serving as co-placement agents.
Shares of Worcester, Mass.-based RXi (NASDAQ:RXII) closed at $8.60 Tuesday, down 44 cents. |
