Markets
Biotech

Thinly Traded BioMed Issuers See Favorable Terms

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Conventional wisdom in the private placement market has long held that an issuer’s size and liquidity largely dictate a deal’s structure. The most onerous discounts and warrant coverage are reserved for the smallest and most thinly traded companies, the thinking goes, while the terms improve as an issuer’s size and liquidity grows. 

But a review of unregistered common stock PIPEs and growth equity private placements (GEPPs) over the past year reveals that the rule of thumb has hardly applied to biotech and pharmaceutical issuers. Traditionally companies in these industries have been the most active pursuers of private financings, and findings indicate that some funds are willing to take high risks for high rewards. Using Sagient Research’s growth equity market monitor PlacementTracker, Growth Capital Investor analyzed private financings over 12 months ended Jan. 31.

Deals

Cytori Therapeutics Raises $20M in CMPO

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Cytori Therapeutics (CYTX) announced that it has raised $20 million in a CMPO/Overnight transaction. The common stock was sold at $2.85 per share, an approximate 14% discount to the market price ($3.32) of CYTX at deal announcement. The common stock was sold at $2.85 per share, an approximate 14% discount to the market price ($3.32) of CYTX at deal announcement. Lazard acted as Lead Agent with Ascendiant Securities and Maxim Group acting as Co-Agents on the transaction. Placement Agent counsel was Proskauer Rose and issuer counsel was DLA Piper.

Deals

OncoSec Medical Raises Capital Via RDO Transaction

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OncoSec Medical (ONCS) has raised $7.2 million in a Registered Direct transaction with Dawson James Securities as exclusive agent. The common stock was sold at $0.25 per share, an approximate 19% discount to the market price ($0.31) of ONCS at deal announcement. A series of 14,400,000 48-Month Warrants with an exercise price of $0.26 per share (16.13% discount) was issued to the investors in this transaction. Burrill and Noble Financial acted as financial advisors. Issuer counsel was McDonald Carano Wilson.

Deals

Sarepta Therapeutics Raises $125M in CMPO/Overnight

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Sarepta Therapeutics (SRPT) has raised $125 million in a CMPO/Overnight transaction. The common stock was sold at $25.25 per share, an approximate 1% discount to the market price ($25.44) of SRPT at deal announcement. Lazard acted as lead agent, with Cowen and Company acting as co-lead and Canaccord Genuity, JMP Securities, and Wedbush PacGrow Life Sciences acting as co-agents on the transaction. Placement agent counsel was Proskauer Rose, and issuer counsel was White Summers Caffee & James. The transaction is expected to close by Dec.