I was always under the impression that the best time to release news you didn’t want anyone to fuss about was the Friday before a long weekend.
Somaxon Pharmaceuticals, Inc. Secures up to $65 Million in Financing
Somaxon (NASDAQ:SOMX) Pharmaceuticals, Inc. announced that it has entered into a $15 million secured loan agreement with Oxford Finance Corporation and Silicon Valley Bank at 9.57% per annum and a Committed Equity Financing Facility [CEFF] with Kingsbridge Capital Limited in which Kingsbridge has committed to provide up to $50 million of capital through the purchase of newly-issued shares of Somaxon’s common stock. Clearly in preparation for the FDA decision on SILENOR.
NxStage Announces $43 Million Private Placement of Equity Securities
NxStage Medical (NASDAQ:NXTM) announced a $43 million private placement of its common stock and warrants. The private placement consists of 9.6 million shares of NxStage common stock at a price of $4.50 per share and warrants to purchase 1.9 million shares of common stock at an exercise price of $5.50 per share, which price may be adjusted to $3.00 or $6.50 depending upon whether the Company achieves certain targets relating to the number of End Stage Renal Disease patients prescribed to receive therapy with the NxStage System One as of December 31, 2008.
The private placement will be closed in two tranches. The Company has agreed to sell the first tranche of $25 million to OrbiMed Advisors LLC (plus a seat on the board of directors) and the second $18 million to existing institutional investors. This second tranche is subject to stockholder approval, and is expected to close during the third quarter, after they hold a special meeting of its stockholders.
Allos Therapeutics Announces Pricing of Public Offering of 10,800,000 Shares of Common Stock
Allos (NASDAQ:ALTH) announced the pricing of an underwritten public offering of 10,800,000 shares of newly issued common stock at a public offering price of $5.64 per share. They expect to receive net proceeds from the offering of approximately $56.6 million, after deducting underwriting commissions and estimated offering expenses. The company plans to use the net proceeds from the financing for, and I’m boiling this down a bit, running their business.