MARLBOROUGH, Mass.,
Dec. 21, 2016 /PRNewswire/
-- RXi Pharmaceuticals Corporation (NASDAQ: RXII), a
clinical-stage company developing innovative therapeutics that
address significant unmet medical needs, today announced the
closing of its underwritten public offering of securities for gross
proceeds of $11.5 million, which
includes the full exercise of the underwriters' over-allotment
option to purchase additional shares and
warrants.
Participants in this financing included healthcare-focused
institutional investors, high net worth individuals, the Company's
Chief Executive Officer, Geert
Cauwenbergh, Dr. Med. Sc. and Chief Development Officer,
Pamela Pavco, Ph.D. Other
participants included OPKO Health, Inc. (NASDAQ: OPK), an existing
investor of RXi, and Timothy
Barberich, co-founder of MirImmune, Inc. and former CEO and
Chairman of Sepracor, Inc.
The Company issued 2,131,111 Class A Units, priced at a public
offering price of $0.90 per unit,
with each unit consisting of one share of common stock and a
five-year warrant to purchase one share of common stock at an
exercise price of $0.90 per share,
and 8,082 Class B Units, priced at a public offering price of
$1,000 per unit, with each unit
consisting of 1,111.11 five-year warrants to purchase one share of
common stock at an exercise price of $0.90 per share and one share of Series B
Convertible Preferred Stock, which is convertible into 1,111.11
shares of common stock. The warrants issued in connection
with the transaction are listed on NASDAQ and will trade under the
ticker symbol RXIIW.
In total, RXi issued 2,131,111 shares of common stock, 8,082
shares of Series B Convertible Preferred Stock convertible into
8,980,000 shares of common stock and warrants to purchase
11,111,111 shares of common stock. Additionally, the underwriters
have exercised their over-allotment option to purchase 1,666,666
additional shares of common stock and warrants to purchase up to an
additional 1,666,666 shares of common stock at the public offering
price per share and warrant less the underwriting discounts and
commissions.
The net proceeds of the offering are estimated to be
approximately $10.4 million, after
deducting underwriting discounts and commissions and estimated
offering expenses. RXi plans to use the net proceeds to support the
company's clinical trials, to support general corporate purposes
and general and administrative expenses and, if the option
agreement with MirImmune, Inc. is exercised, to support the
potential acquisition of MirImmune and the development of its
pipeline.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE MKT-LTS) acted as the sole
bookrunner for the offering, and Griffin Securities, Inc. acted as
co-manager.
The securities were offered pursuant to a registration statement
on Form S-1 (File No. 333-214199), which was declared effective by
the Securities and Exchange Commission (SEC) on December 15, 2016. A final prospectus related to
the offering was filed with the SEC on December 16, 2016. Copies of the final
prospectus, when available, may be obtained at the SEC's website at
www.sec.gov, or by contacting Ladenburg Thalmann & Co. Inc.,
570 Lexington Avenue, 11th Floor, New York, New York 10022 or by email at
prospectus@ladenburg.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals Corporation (NASDAQ: RXII) is a
clinical-stage company developing innovative therapeutics that
address significant unmet medical needs. Building on the
pioneering discovery of RNAi, the Company's discovery and clinical
development programs are based on its proprietary self-delivering
RNAi (sd-rxRNA®) platform and Samcyprone™, a small molecule topical
immunomodulator. Current clinical development programs include
RXI-109, an sd-rxRNA, for the treatment of dermal and ocular
scarring, and Samcyprone™ for the treatment of such disorders as
warts, alopecia areata, non-malignant skin tumors and cutaneous
metastases of melanoma. RXi's robust pipeline, coupled with
an extensive patent portfolio, provides for multiple product and
business development opportunities across a broad spectrum of
therapeutic areas. We are committed to being a partner of choice
for academia, small companies, and large multinationals. We welcome
ideas and proposals for strategic alliances, including in- and
out-licensing opportunities, to advance and further develop
strategic areas of interest. Additional information may be found on
the Company's website, www.rxipharma.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about the offering. These forward-looking statements involve
significant risks, uncertainties and assumptions, including the
risk that the offering does not close and/or that the Company
decides not to exercise its option to acquire MirImmune, Inc. RXi
Pharmaceuticals Corporation does not undertake to update any of
these forward-looking statements to reflect a change in its views
or events or circumstances that occur after the date of this
release.
Contact
RXi Pharmaceuticals Corporation
Tamara McGrillen
508-929-3646
tmcgrillen@rxipharma.com
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SOURCE RXi Pharmaceuticals Corporation