Injectable drug delivery systems developer and commercial supplier Unilife Corporation has announced the completion of the sale of common stocks and warrants for gross proceeds totaling $10 million. This has been achieved under a registered direct public offering with Crede CG II Ltd. – an accredited institutional investor based in the United States and a wholly owned subsidiary of Crede Capital Group LLC (CCG).
CCG paid $2.241667 per unit – around $0.04 over the closing price of Unilife common stock on Friday, Feb. 8. Consisting of one share of Unilife common stock, each unit also includes a warrant to purchase one-third of a share of Unilife common stock. Through this offering, Unilife has issued 4,460,966 shares of Unilife common stock, as well as warrants to purchase up to an aggregate of 1,486,988 shares of Unilife common stock. Immediately exercisable at a price of $3.00 per share, the warrants have a five-year term. It is not required for Unilife to obtain shareholder approval for the issue of units to CCG.
Unilife plans to use the net proceeds of this offering to fund the ongoing development and supply of its broad portfolio of injectable drug delivery systems, as well as to buy and operate capital equipment for the expansion of production and for working capital and other general corporate purposes.
“After being approached last week by Crede Capital and advised that they sought to take a long-term, passive position in Unilife, we determined that the timing of such an investment was favorable and in the best interests of shareholders,” said Unilife CEO Alan Shortall. “I consider the dilution to be minimal and outweighed by the commercial and financial options it creates for us moving forward.”
“We believe this financing strengthens our balance sheet and enhances our ability to finalize a series of near-term agreements with pharmaceutical companies over the coming months,” Shortall continued. “It will also help us secure favorable terms with U.S. institutions for a proposed long-term debt financing that would allow us to minimize future dilution of shareholders.”
Unilife’s gross proceeds from the offering are $10 million, and the net proceeds are expected to be around $9.6 million after deducting the placement agent and estimated offering expenses.
For more information, visit www.unilife.com
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