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news.Avanir Pharmaceuticals has obtained commitments from a select group of institutional investors led by ProQuest Investments and joined by Clarus Ventures, Vivo Ventures and OrbiMed Advisors to raise gross proceeds of $40 million in a registered direct offering.
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At closing, Avanir will issue an aggregate of approximately 35 million shares at a price of $1.14 per share unit with 35% warrant coverage. The warrants, which represent the right to acquire up to approximately 12.2 million shares, are exercisable at 125% of the offering price and have a five-year exercise term.
Net offering proceeds are expected to be approximately $37.9 million. The transaction is expected to close on or about April 4, 2008, subject to customary closing conditions.
The proceeds from this transaction will be used to complete the confirmatory Phase III Star trial of the investigational drug Zenvia and submit a complete response to the FDA approvable letter for the pseudobulbar affect indication.