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news.Corcept Therapeutics has entered into a definitive agreement with certain accredited investors for the private placement of approximately 8.9 million shares of its common stock at a price of $2.77 per share and warrants to purchase approximately 4.5 million shares of its common stock, at a price of $0.125 per warrant.
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The warrants have a seven year term and an exercise price of $2.77 per share. The transaction is expected to raise approximately $25.3 million in gross proceeds. The closing for the financing is expected to occur on March 25, 2008 subject to the satisfaction of customary closing conditions.
Pursuant to the agreement, the investors led by Longitude Capital Management have irrevocably committed to purchase the shares. Other investors participating in the offering include Paperboy Ventures, Sutter Hill Ventures and Alta Partners, venture capital firms that are all significant shareholders in Corcept, as well as various entities and individuals related to these firms.
Corcept intends to use the proceeds of the financing to conduct its next Phase III clinical trial evaluating Corlux for the treatment of the psychotic features of psychotic depression, which will begin enrollment shortly, to conduct a clinical trial for Corlux for the treatment of Cushing’s Syndrome, to continue development of its proprietary, selective GR-II antagonists and for general corporate purposes, including working capital.