Jaguar Animal Health Inc (NASDAQ:JAGX) an animal health company has announced its entry into a common stock purchase agreement which is inclusive of registration rights with Aspire Capital Fund, LLC (“Aspire”). The agreement is worth $15 million. Jaguar Animal Health is a company that focuses on development and sale of high quality first of its kind gastrointestinal products for companion and production animals, foals and high end horses while Aspire is an institutional investing firm based in Chicago. The agreement was marked with the purchase of 222,222 shares of Jaguar’s common stock by Aspire for $500,000.
Contents of the agreement
The remaining Jaguar common stock, which is worth $14.5 million will be sold to Aspire after the U. S Securities and Exchange Commission has received and declared effective the registration statement that relates to the transaction. The sale will be carried out within a period of 30 months and according to the prevailing markets prices at that particular time. Aspire will make stock purchases from Jaguar at a time and in amounts that are solely Jaguar’s discretion. The agreement between these two companies is void of future financing restrictions, rights of first refusal, financial covenants, participation rights and penalties, limits to the use of any of the proceeds. Finally Jaguar can end the Agreement at any time without facing any penalty.
What the agreement means
Jaguar’s President and CEO, Lisa Conte says the Agreement strengthens Jaguar’s balance sheet and adds them flexibility. These two elements are essential in supporting their continuing clinical functions plus the expected sale of their product and so they are happy to have Aspire as a stockholder. Conte adds that that they expect the agreement to become a great asset for Jaguar as they discuss potential mergers and acquisitions activity as well as potential business development.
Jaguar Animal Health Inc (NASDAQ:JAGX) stock is performing well in Wall Street after the company announced its agreement with Aspire. Since this news hit the market, Jaguar’s share price has hit the roof to a rate above 100 percent.
Jaguar has also been engaging in talks with Napo Pharmaceuticals, Inc. (“Napo”) concerning a merger or how the two companies can work together.