BioDelivery Sciences International Inc. closed its offering of series B non-voting convertible preferred stock on May 21 for net proceeds of about $48.9 million.
The stock, priced at $10,000 each, will be convertible into common shares of the company at $1.80 apiece.
In connection with the closing of the offering, the company added Kevin Kotler, Todd Davis and Peter Greenleaf, who were selected by Broadfin Capital LLC, to its board.
The directors were selected as part of an agreement between BioDelivery and Broadfin to reconstitute BioDelivery's board and to significantly strengthen the company's financial position.
Kotler is Broadfin Capital's managing partner and Davis recently served as founder, managing partner and president of an investment firm, RoyaltyRx Capital LLC. Greenleaf, who is currently CEO of Cerecor Inc., was also named as BioDelivery's board chairman.
Under the agreement, Broadfin will withdraw its notice of nomination of persons for election as directors at BioDelivery's 2018 annual meeting of stockholders.
Broadfin also agreed to vote its shares at the annual meeting for BioDelivery's director nominees and otherwise in accordance with the board's recommendations, and to certain customary standstill restrictions through the 30th day before the nomination deadline for the 2019 annual meeting.
