Ziopharm Oncology Inc. closed a private placement to raise gross proceeds of $8.4 million from an accredited investor.
The Boston-based biotechnology company, which develops and commercializes treatments for tumors and unknown antigens, issued 2,787,879 common shares at $3.01 each against the exercise of all remaining warrants held by the investor.
Additionally, Ziopharm issued new five-year warrants to purchase 2,787,879 additional shares to the investor, who can exercise the new warrants six months after the date of issue for $7 per share. The investor can only exercise the new warrants if its stake in the company does not exceed 9.99% of all outstanding shares. However, it can alter or terminate the ownership limit clause with a 61-day prior notice.
The placement closed Sept. 13.
