RXi Pharmaceuticals closed its underwritten public offering of securities for gross proceeds of $11.5 million, including the full exercise of the underwriters' overallotment option to buy additional shares and warrants.
Participants in this financing included healthcare-focused institutional investors, high net worth individuals, the company's CEO Geert Cauwenbergh and Chief Development Officer Pamela Pavco. Other participants included Opko Health Inc., an existing investor of RXi, and Timothy Barberich, co-founder of MirImmune Inc. and former CEO and chairman of Sepracor Inc.
RXi issued a total of 2,131,111 common shares, 8,082 series B convertible preferred shares convertible into 8,980,000 common shares and warrants to buy 11,111,111 common shares. The underwriters exercised their overallotment option to buy 1,666,666 additional common shares and warrants to buy up to an additional 1,666,666 common shares at the public offering price per share and warrant less the underwriting discounts and commissions.
Net proceeds of the offering are estimated to be about $10.4 million, after deducting underwriting discounts and commissions and estimated offering expenses. The company plans to use the proceeds to support its clinical trials, to support general corporate purposes and general and administrative expenses and, if the option agreement with MirImmune is exercised, to support the potential acquisition of MirImmune and the development of its pipeline.
Ladenburg Thalmann & Co. Inc. acted as the sole book runner and Griffin Securities Inc. acted as co-manager for the offering.