Arena Pharmaceuticals, Inc. (ARNA: Quote) said it has agreed to sell 9.95 million shares of its common stock at a price of $1.65775 per share, and around 9,953 shares of its Series D Convertible Preferred Stock, at a price of $1,657.75 per share, in a registered direct public offering to entities affiliated with Deerfield Management, a healthcare investment organization. The closing of the offering is expected to take place on or about January 13, 2012.
The company noted that the preferred stock is convertible into an aggregate of 9.95 million shares of its common stock. Arena expects to receive gross proceeds of around $33 million.
The company stated that it will use $5 million of the proceeds from the offering to prepay a portion of the loan principal that otherwise would have been required to be repaid in June 2013 under the existing Facility Agreement between Arena and Deerfield.
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by RTT Staff Writer
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