Date: 2016-06-08
Type of information: Private placement
Company: Lion Biotechnologies (USA - CA)
Investors: institutional and other accredited investors
Amount: $100 million
Funding type: private placement
Planned used: The proceeds will be used to further advance Lion Biotechnologies' clinical program in utilizing tumor infiltrating lymphocytes (TILs) immunotherapy in treating solid tumors.
Others: * On June 8, 2016, Lion Biotechnologies announced the closing of its previously announced private financing with institutional and other accredited investors. Lion Biotechnologies received gross proceeds of $100 million, before paying the placement agents' fees and estimated offering expenses payable by the Company. At the closing, the Company issued 9,684,000 shares of common stock and 11,368,633 shares of its new non-voting Series B Preferred Stock. The investors purchased both shares of common stock and shares of the newly authorized Series B Preferred Stock. The shares of common stock and the shares of Series B Preferred Stock were sold at $4.75 per share. The shares of Series B Preferred Stock have a stated value of $4.75 per share and, following receipt of stockholder approval of the conversion feature, will be convertible into shares of common stock at an initial conversion price of $4.75 per share. The Company intends to solicit stockholder approval of the conversion feature of the Series B Preferred Stock at a meeting of stockholders to be held in the near future. * On June 3, 2016, Lion Biotechnologies announced that it has entered into a securities purchase agreement with institutional and other accredited investors under which the investors have agreed to purchase a total of 9,684,000 shares of common stock and approximately 11,368,500 shares of newly authorized Series B Preferred Stock in a private placement for aggregate gross proceeds of approximately $100.0 million. The purchase price will be $4.75 for each share of common stock and $4.75 for each share of Series B Preferred Stock. The offering is expected to close on or about June 7, 2016, subject to customary closing conditions. Each share of Series B Preferred Stock will become convertible into one share of common stock, subject to the approval of the company's stockholders in accordance with The NASDAQ Global Market rules. The Series B Preferred Stock is non-voting. The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended, or applicable under state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. As part of the transaction, the company has agreed to file a registration statement with the Securities and Exchange Commission for purposes of registering the resale by the investors of the shares of common stock purchased by the investors, as well as the shares of common stock issuable upon the conversion of the Series B Preferred Stock purchased, assuming the shares become convertible as described above.
Therapeutic area: Cancer - Oncology
