Strongbridge Biopharma PLC expects to raise $35 million of gross proceeds from a private placement of ordinary shares and warrants.
The company will issue 14 million ordinary shares to the investors priced at $2.50 per share and warrants to purchase 7 million shares. The warrants have an exercise price of $2.50 per share, with an expiration of five years from issuance date.
Strongbridge plans to use the proceeds of the private placement primarily to fund its acquisition of the U.S. rights for the paralysis drug KEVEYIS, its clinical development programs and other general corporate purposes.
The offering is expected to close Dec. 28, subject to satisfaction of customary closing conditions and the closing of Strongbridge's planned $40 million credit facility.
The financing is being led by CAM Capital and Vivo Capital, with additional participation from Broadfin Capital, Boxer Capital of the Tavistock Group and HealthCap, as well as several new and existing institutional and individual investors.
Stifel is the lead placement agent, with JMP Securities as the lead co-placement agent in the offering. H.C. Wainwright & Co. and Arctic Securities are co-placement agents.