Celsion Corp. said it expects to receive gross proceeds of about $15.6 million from the exercise of series AAA and series BBB warrants.
On July 6, Celsion entered into a securities purchase agreement with certain investors to issue 2,435,000 series AAA warrants at an exercise price of $2.07 per share and 2,435,000 series BBB warrants at an exercise price of $4.75 per share, each to buy one common share.
The company entered into exercise agreements with holders of the series AAA warrants to permit their immediate exercise. They were previously not exercisable until January 11, 2018.
Warrant holders agreed to exercise all of their existing series AAA and series BBB warrants with respect to 4,665,000 shares of common stock.
Celsion will also issue 1,166,250 series DDD warrants, each to buy one common share, and exercisable for not less than $6.07. The warrants will be exercisable no sooner than six months following issuance and will terminate six months after issuance.
The company intends to use net proceeds for general corporate purposes.
The capital infusion extends the company's operating runway through 2018, with the agreements eliminating the immediate financing overhang the company has faced over the past several years, Celsion Chairman, President and CEO Michael Tardugno said.