MacAndrews & Forbes will pay the lesser of $3.06 or the volume-weighted average during the five days prior to the purchase date.
Siga Technologies reports an arrangement with investor MacAndrews & Forbes, according to which the company could obtain up to $8 million. Siga uses viral and bacterial genomics and computational modeling to design and develop products against infectious diseases.
Over the next 12 months the firm has the option to cause MacAndrews & Forbes to purchase newly issued shares of common stock in up to three tranches. MacAndrews & Forbes will pay the lesser of $3.06 and the average volume-weighted price per share for the five trading days preceding the date of the purchase. Siga opened trading today at $3.41.
Additionally, in conjunction with each sale of common stock, the company will issue warrants to MacAndrews & Forbes to buy up to 40% of the shares it acquires at 115% of the initial purchase price. MacAndrews & Forbes has the right to cause Siga to issue new shares on the same terms.
“Obtaining this commitment,” remarks Eric A. Rose, M.D., CEO of Siga, “now assures our investors and partners that Siga will have the financial strength it needs as it continues toward its near-term goal of commercializing lead product candidate, ST-246®, and makes additional progress on its pipeline of drugs in development.” ST-246 is an oral therapeutic that is active against orthopoxviruses including smallpox.