RXi Pharmaceuticals Corp. priced an underwritten public offering of securities to generate gross proceeds of $10 million.
The company is offering class A units at 90 cents per unit and class B units at $1,000 per unit. The class A units include 1 common share and a five-year warrant to buy 1 common share at an exercise price of 90 cents per share, while the class B units include 1 series B convertible preferred share that is convertible to 1,111.11 common shares and 1,111.11 warrants.
RXi will issue a total of 2,131,111 common shares, 8,082 series B convertible preferred share convertible into 8,980,000 common shares and warrants to buy 11,111,111 common shares in the offering. It has granted underwriters an overallotment option to buy up to an additional 1,666,666 common shares and warrants to buy up to 1,666,666 common shares.
The offer is expected to close Dec. 21, subject to the satisfaction or waiver of customary closing conditions.
Ladenburg Thalmann & Co. Inc. is the sole book runner, while Griffin Securities Inc. is co-manager in the offering.