Leading clinical stage biotechnology company, Bio Blast Pharma Ltd (NASDAQ:ORPN), announced definitive security purchase agreement with a couple of institutional investors in the healthcare segment.
As part of this agreement, it will issue about 2.16 million ordinary shares at $3.10 per share purchase price in warrants and registered direct offering. Bio Blast will purchase approximate 1.08 million ordinary shares, carrying an exercise price of $4.50 and gross proceeds of about $6.7 million.
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The warrants issued this way can be exercised six months after the issuance and come with a term period of 5.5 years. In order to execute it successfully, Bio Blast has appointed Rodman & Renshaw and Roth Capital Partners as the exclusive placement agents for this transaction. If everything goes as per plans and all the customary closing conditions are fulfilled, this sale of securities will close on March 22, 2016.
Reports claim that the shares mentioned above were offered after a shelf registration statement from United States Securities and Exchange Commission was released. At the same time, the warrants mentioned here were offered by the company in a private placement under the Securities Act of 1933.
Meanwhile, Bio Blast announced the results of the HOPEMD Phase 2 clinical study in all those patients that are suffering from oculopharyngeal muscular dystrophy. As per the reports, the results were up to the expectations of Bio Blast. Company’s Senior Medical Advisor, Prof. Zohar Argov M.D, discussed these findings in detail at the Myology 2016 conference in France. Those who missed this session have one more chance to hear him live as he will present these results at the upcoming American Academy of Neurology in Canada.
It’s a delightful moment for Bio Blast as it has shared two excellent updates in a matter of few days. Going forward, the entire management team of the company will try its best to live up to investors expectations by taking many more such initiatives.