Ampliphi Biosciences Corp (OTCMKTS:APHB) a leading firm in bacteriophage-based antibacterial treatments to cure drug resistant infections disclosed that it has finalized a definitive purchase deals of warrants and common stock with a certain group of institutional accredited investors. The group contains both new and existing investor. It also includes strategic alliance associate Intrexon (NYSE:XON), to generate almost $13 million in a private placement financing.
As per the purchase deal, Ampliphi will issue around 78.78 million shares of the common stock at a price of $0.165 a share, as well as the offer and issuance of warrants to buy 0.25 shares of the company’s common stock. The warrants, which indicate the right to buy total of around 19.69 million shares of common stock, terminate in March 2020. It can be exercised at a price of $0.215 a share.
The warrants can be exercised starting on the later of the date the company opts for a reverse stock split or raises the number of authorized share, and the first year completion of the date of issuance. In either case in an amount adequate to allow the exercise in full of the issued warrants under the offering. If the share increase or reverse stock split occurs before one year of completion, the warrants can be exercised at that time. The anticipated net proceeds from the private placement offered by Ampliphi will be around $12.15 million. Griffin Securities, Inc. and Roth Capital Partners were placement agents for the private placement offering.
The management view
Jeremy Curnock Cook, the Chairman of Ampliphi Biosciences Corp (OTCMKTS:APHB), said that the company is looking forward to a thrilling 2015 as the trials approach the clinic. The financing round offers the necessary funds to support the phage therapy plans into clinical trials. The company together with its world-class associates, which consists prominent research institutions and the strategic collaborator Intrexon, is well positioned to realize the prospective of phage-based therapies.