Idera Confirms Private Placement of up to US$97.7 Million

- December 23rd, 2019

Idera Pharmaceuticals announced today it is entering into an agreement for gross proceeds of US$3.9 million.

Idera Pharmaceuticals (NASDAQ:IDRA) announced it is entering into an agreement with funds affiliated with an institutional investor providing for a private placement, pursuant to which Idera has sold shares of Series B1 convertible preferred stock and warrants to purchase common stock for gross proceeds of US$3.9 million.

As quoted in the press release:

In connection with the agreement for the private placement, the investors in the private placement will pay Idera an upfront option fee of approximately $6.2 million. Under the agreement, Idera also agreed to sell to the investors, at their option and subject to certain conditions including stockholder approval to increase Idera’s authorized shares of common stock, shares of Series B2, Series B3 and Series B4 convertible preferred stock and warrants to purchase common stock for aggregate gross proceeds of up to an additional $87.6 million over a 21 month period after stockholder approval is received. The Company has the right to decline the Series B4 investment if its common stock trades at $7.60 for 20 days out of 30 days subsequent to the closing of the Series B3 investment.

The transaction was priced at-the-market under the Nasdaq rules. The Series B1 convertible preferred stock and associated warrant had a combined purchase price on an as converted basis of $1.645. The warrants to purchase common stock have an exercise price of $1.52 per share and an exercise period commencing on issuance and a term of seven years.

Click here to read the full press release.

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