Pursuant to the transaction, Metabasis reduced the exercise prices of the existing warrants held by the participants in exchange for the immediate exercise of the warrants. Metabasis also sold additional shares of common stock and warrants for the purchase of common stock in a concurrent private placement.
Under the transaction, warrants for the purchase of 127,557 shares of common stock with an exercise price of $8.70 per share and warrants for the purchase of 1,558,279 shares of common stock with an exercise price of $6.74 per share were exercised at the closing bid price. In addition, Metabasis sold 2,485,103 shares of common stock at $2.34 per share and warrants for the purchase of 1,057,196 shares of common stock with an exercise price of $2.69 per share.
As a result of the transaction, a total of 4,170,939 shares of common stock were issued and the total number of shares issuable upon the exercise of all outstanding warrants was reduced from 3,461,978 to 2,833,338 shares. Following the transaction, Metabasis had 34,930,843 shares of common stock outstanding.
Metabasis intends to use the proceeds from the transaction for general corporate purposes, including the further clinical development of MB07803 and MB07811 for the treatment of diabetes and hyperlipidemia, respectively.