San Diego, USA-based biopharmaceutical company Favrille says it has entered into a binding agreement to raise approximately $45.0 million in a private placement of common stock and the concurrent issuance of warrants for the purchase of common stock. The company says it will use the funds to finance its recently-initiated Phase III trial of its lead develpmental anticancer product Favld (idiotype vaccine), under assessment as a treatment for B-cell non-Hodgkin's lymphoma. The product received fast-track designation from the US Food and Drug Administration.
The placement is being led by MPM BioEquities Adviser and includes investments from the Federated Kaufmann Fund, T Rowe Price Associates, Tang Capital Management, ProMed Management, Forward Ventures, Alloy Ventures and William Blair Capital Partners. Under the terms of the agreement, the firm will sell 8.6 million shares of its common stock at a price of $5.26 per share, the closing price of the group's stock prior to the announcement of the deal. In addition, the company says it will issue warrants to purchase 3 million shares of its common stock at the same price per share.
At the closing of the financing, investors will pay an additional purchase price equal to $0.125 for each share underlying the warrants.
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