MediciNova Nets $9.5 Million From Settlement Of Auction Rate Securities Held By UBS
SAN DIEGO, July 6, 2010 (GLOBE NEWSWIRE) -- MediciNova, Inc., a biopharmaceutical company that is publicly traded on the Nasdaq Global Market (Nasdaq:MNOV) and the Hercules Market of the Osaka Securities Exchange (Code Number: 4875), today announced that on July 1, 2010, it completed the sale of all of its Auction Rate Securities ("ARS") held by UBS AG at par value. After repaying the ARS Loan described below, MediciNova netted $9.5 million from the transaction, all of which has been invested in money market funds.
In August 2008, UBS AG and its affiliates ("UBS"), the brokerage firm through which MediciNova purchased the majority of its ARS investments, entered into a settlement with the SEC, the New York Attorney General and other state agencies. Under the settlement, UBS issued to MediciNova the Auction Rate Security Rights, which would allow MediciNova to sell to UBS its ARS held in accounts with UBS ("ARS Rights Offer"). Pursuant to the ARS Rights Offer, MediciNova received the right to sell to UBS the ARS held in accounts with UBS at par value at any time during the period beginning June 30, 2010 and ending July 2, 2012. As part of the settlement, UBS also offered to MediciNova a no net cost loan program ("ARS Loan"), whereby MediciNova was able to borrow up to 75% of the market value, as determined by UBS at its sole discretion, of MediciNova's ARS that were pledged as collateral at an interest cost that would not exceed the interest being paid on the underlying ARS investments.
MediciNova continues to hold $1.8 million of ARS consisting of private placement securities that are classified as long-term investment securities. None of the underlying collateral of the ARS consists of subprime mortgages or collateralized debt obligations."We will use this cash to facilitate the further development our lead compound, MN-221 for the treatment of acute exacerbations due to asthma and COPD," said Yuichi Iwaki, M.D., Ph.D., President and Chief Executive Officer of MediciNova.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV