Lexicon Pharmaceuticals 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.
For further deal information visit Current Agreements (subscription required)
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