Galena Biopharma announced the execution of a purchase agreement for up to $55.0 million with Lincoln Park Capital Fund.
Under the terms of the purchase agreement dated November 18, 2014, LPC initially purchased $5.0 million dollars of Galena common stock at a price of $2.00 per share, 9% higher than the market close as of November 18, 2014.
Thereafter, at its sole discretion, Galena may sell up to $50 million worth of common stock to LPC over the 36-month term of the purchase agreement, subject to the conditions and limitations set forth in the purchase agreement.
Under the terms of the purchase agreement, LPC will not cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Galena common stock and is obligated to purchase at times and amounts controlled by the Company.
In consideration for entering into the agreement the Company issued shares of its common stock to LPC as a commitment fee.
Galena plans to use the proceeds received for its commercial and product development activities and for other working capital and general corporate purposes.