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Seelos Raises $20 Mln In Convertible Debt; Additional $30mln Tied To Targets

Clinical-stage biopharmaceutical company Seelos Therapeutics, Inc. (SEEL), on Wednesday announced the placement of a $22 million senior secured convertible note and shares of Seelos common stock to Lind Global Asset Management V, LLC. Lind Global Asset Management is managed by The Lind Partners, a New York-based institutional fund manager and an existing investor in Seelos.

Seelos would receive $20 million in gross proceeds which it intends to use for general corporate purposes and to advance the development of its product candidates.

The 36-month note carrying zero percent coupon in the first year and 5 percent thereafter would be repayable in 24 monthly payments beginning in November 2022. The principal and interest repayments could be made, in cash, common stock, or a combination of both. Starting 9 months after the date of issuance, the note would be convertible at Lind's option into shares of Seelos common stock at a fixed conversion price of $6.00 per share. Seelos also reserves the right to make prepayments on the debt subject to certain agreed conditions.

The agreement includes up to an additional $30.0 million of funding in senior secured convertible notes based on achievement of certain future milestones, which may be either at the option of Seelos or with the mutual agreement of Seelos and Lind depending on the milestone.

Shares of Seelos Therapeutics are currently trading in pre-market at $2.05, up $0.10 or 5.13 percent from previous close.

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