|Spectrum offering mix of stocks, warrants|
|By Staff and Wire Reports|
|Sunday, 20 September 2009 09:30|
On Friday, biotechnology company Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) said it would sell $50 million in securities to institutional investors. The stock traded down immeditely upon the news, but regained some of it's footing after hours. The company has it's second FDA decision pending in as many months on October 8th and if history is any indication, shares will likely trade higher as that date approaches.
The company said it will sell about 6,622,500 common shares along with warrants to purchase up to 2,649,000 additional shares of stock. Spectrum has about 41.9 million shares of stock outstanding.
Each unit will consist of one share and a warrant to purchase about one-half of a share. The units will be sold at $7.55 apiece.
The warrants to purchase additional shares will be exercisable at $7.55 per share beginning six months after issuance and will expire 90 days from the date they are first exercisable.
Proceeds will be used for general corporate purposes. The offering is expected to close no later than Sept. 21.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group Inc., is the exclusive placement agent for the offering.
Shares of Spectrum fell 32 cents, or 4.3 percent, to close at $7.19. The stock has traded between 55 cents and $10 per share over the past 52 weeks.