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Posted: December 18, 2009
Arrowhead Announces $3.2 Million Private Placement
(Nanowerk News) Arrowhead Research Corporation has announced that it has raised approximately $3.2 million in gross proceeds from a private placement of approximately 5.0 million units. Units were sold for $0.634 each, $0.125 higher than the $0.509 closing bid price of the Company’s common stock on the NASDAQ Stock Market on December 11, 2009, the date of the sale. Each unit consisted of one share of newly issued common stock and one warrant to purchase an additional share of common stock at an exercise price of $0.509 per share.
“This capital infusion helps put us on more solid footing for 2010,” said Arrowhead’s President and CEO, Christopher Anzalone. “These new funds provide the resources to continue Calando’s clinical study where we are gaining important headway. The preliminary trial results are encouraging and we expect our data set will ultimately bolster the value of Calando’s drug candidate and proprietary RNAi delivery system. In addition, we plan to use funds from this financing to continue exploring exciting new prospects in the nanobiotech space where we see the opportunity to enhance our portfolio and create additional shareholder value.”
The Company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued in the private placement and the shares of common stock issued upon exercise of the warrants.
The shares of common stock and warrants sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements. The shares and warrants were offered and sold only to accredited investors. The offering is expected to close on or before December 21, 2009.
This news release is not an offer to sell or the solicitation of an offer to buy the shares of common stock or warrants to purchase shares of common stock or any other securities of the Company.
About Arrowhead Research Corporation
Arrowhead Research Corporation is a nanotechnology company commercializing new technologies in the areas of life sciences, electronics, and energy. Arrowhead is seeking to build value for shareholders through the progress of majority-owned subsidiaries and minority investments commercializing nanotech products and applications.
Source: Arrowhead Research Corporation (press release)