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news.Affymax, a US-based biopharmaceutical company, has obtained a commitment from institutional investors to purchase approximately $42 million of its common stock in a private placement.
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Under the terms of one of two types of purchase agreements, Affymax will sell 2.84 million newly issued shares of its common stock at a purchase price of $11.25 per share.
In the other purchase agreement, Affymax will sell 652,262 newly issued units at a purchase price of $15.33 per unit, with each unit consisting of one share of common stock and one warrant to purchase 0.65 of a share of common stock. The warrants are immediately exercisable at $16.78 per share and will expire five years from the date of issuance.
The financing was led by ProQuest with participation by existing investors, Sprout Group and Bessemer Venture Partners, and new investor, Biotechnology Value Fund. The net proceeds are expected to be approximately $41.6 million after offering expenses. This transaction is expected to close on or prior to March 2, 2009.