THE WOODLANDS, Texas,
Nov. 26, 2014 /PRNewswire/ -- Lexicon
Pharmaceuticals, Inc. (Nasdaq: LXRX) today announced the completion
of previously announced concurrent financing transactions resulting
in gross proceeds of $280.0
million. After fees and estimated offering expenses,
Lexicon anticipates net proceeds of approximately $273.7 million from the transactions. The
transactions consisted of:
- a public offering of 49,751,244 shares of common stock,
pursuant to a registration statement that has been declared
effective by the Securities & Exchange Commission, resulting in
net proceeds to Lexicon of approximately $46.8 million;
- a private offering to qualified institutional buyers pursuant
to Rule 144A of the Securities Act of 1933, as amended, of
$80.0 million in aggregate principal
amount of 5.25% convertible senior notes due 2021, resulting in net
proceeds to Lexicon of approximately $77.0
million; and
- a private placement of 149,253,731 shares of common stock to
Artal International S.C.A., an affiliate of Invus, L.P., Lexicon's
largest stockholder, resulting in net proceeds to Lexicon of
approximately $149.9 million.
The public offering of common stock remains subject to an
over-allotment option granted to the underwriters to purchase up to
7,462,687 additional shares of common stock. The private
offering of convertible notes remains subject to an over-allotment
option granted to the initial purchasers to purchase up to an
additional $15.0 million aggregate
principal amount of convertible notes.
Lexicon intends to use the net proceeds from the financing
transactions for the clinical development of its drug candidates
and other nonclinical research and development efforts. It
may also use a portion of the net proceeds to acquire or invest in
complementary products and technologies or for general corporate
purposes.
The convertible notes (including the shares of common stock into
which the convertible notes are convertible) and the shares of
Lexicon's common stock issued to Artal have not been registered
under the Securities Act, or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
About Lexicon
Lexicon is a biopharmaceutical company
focused on developing breakthrough treatments for human disease.
Lexicon has clinical-stage drug programs for diabetes, carcinoid
syndrome, and other indications, all of which were discovered by
Lexicon's research team. Lexicon has used its proprietary gene
knockout technology to identify more than 100 promising drug
targets.
Safe Harbor Statement
This press release contains
"forward-looking" statements. Any statements contained in
this press release that are not statements of historical fact may
be deemed to be forward-looking statements. Words such
as "will," "intends" and similar expressions are intended to
identify these forward-looking statements. There are a number
of important factors that could cause Lexicon's results to differ
materially from those indicated by these forward-looking
statements. Additional risks and uncertainties relating to
Lexicon and its business can be found under the heading "Risk
Factors" in Lexicon's filings with the Securities and Exchange
Commission, including its annual report on Form 10-K for the year
ended December 31, 2013 and its
Current Report on Form 8-K filed on November
20, 2014. Unless required by applicable law, Lexicon
undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lexicon-announces-completion-of-280-million-in-financing-transactions-300001716.html
SOURCE Lexicon Pharmaceuticals, Inc.