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news.Lpath has received approximately $6.7 million in gross proceeds in a private placement of unregistered shares of class A common stock.
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The shares were issued at a price of $0.95 per share, with each investor also receiving warrants to purchase the number of shares of class A common stock equal to 25% of the number of common shares purchased in this financing. The warrants have a five-year term and are immediately exercisable at a price of $1.25 per share into restricted shares of class A common stock.
Piper Jaffray & Co served as lead placement agent for the transaction with Griffin Securities and Dawson James Securities serving as co-agents.
Certain existing stockholders were participants in the transaction, including Lehman Brothers, William Harris Investors, and entities affiliated with the Peierls Foundation.
Proceeds from the funding will be used to support the Phase I clinical trials for Lpath’s two leading drug candidates, Asonep and iSONEP. Asonep is an antibody against S1P that is in Phase I clinical trials for the treatment of cancer. Lpath has received the FDA authorization to begin Phase I clinical trials of iSONEP, the ocular formulation of the S1P antibody.
Scott Pancoast, president and CEO of Lpath, said: “This funding enables us to advance our lead programs through the clinical trial process, while allowing us to explore various strategic opportunities.”