HAYWARD, Calif., April 5, 2013 /PRNewswire/ -- Anthera Pharmaceuticals, Inc. (Nasdaq: ANTH), a biopharmaceutical company developing drugs to treat serious diseases associated with inflammation, today announced that it has secured a new $20.0 million debt financing facility through a syndicate led by MidCap Financial SBIC, LP ("MidCap Financial"). Anthera will use the loan proceeds to refinance the remaining principal of the loan agreement entered into with Hercules Technology Growth Capital, Inc. in 2011 and for general corporate purposes. MidCap Financial will receive warrants to purchase an aggregate of 588,235 shares of Anthera's common stock at an exercise price of $0.68.
"The favorable terms of the new debt financing facility, coupled with our January 2013 equity financing of approximately $43.0 million of net proceeds, provides the liquidity we need to deliver key milestones for 2013 and 2014," said Chris Lowe, Anthera's Chief Business Officer and Chief Financial Officer.
Additionally, Anthera has entered into an $18.5 million common stock purchase agreement with Lincoln Park Capital Fund, LLC ("LPC") a Chicago-based institutional investor. Upon executing the agreement, LPC made an initial purchase of $2,000,000 in common stock from Anthera at a purchase price of $0.648 per share. Furthermore, for a period of two years, Anthera has the right to sell up to an additional $16.5 million of its common stock to LPC at prices that are generally determined by the Company. Anthera expects to use the proceeds from this transaction for servicing long-term debt and working capital.
Under the terms of the agreement, there are no upper limits to the price that LPC may pay to purchase Anthera's common stock. Anthera will control the timing of any future sales and the amount of shares to be sold. LPC has no right to require any sales and is obligated to purchase the common stock as directed by Anthera. Under the terms of the agreement, LPC has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Anthera's shares of common stock. In consideration for entering into the agreement, Anthera may issue up to 898,059 of additional shares to LPC as a commitment fee, depending upon the actual amount drawn from the equity line. The shares covered under the agreement are the subject of a prospectus supplement pursuant to Anthera's effective shelf registration statement and base prospectus contained therein.
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