Under the terms of the offering, CombinatoRx will sell 5.6 million shares of its common stock at a price of $6.25 per share, which represents a 6.5% discount to the closing price. Net proceeds to CombinatoRx following payment of placement agency fees and estimated offering expenses payable by CombinatoRx are expected to be approximately $33.1 million.
The shares are being offered by CombinatoRx pursuant to a filed registration statement, which was declared effective by the Securities and Exchange Commission. The transaction is expected to close soon, subject to customary closing conditions. CombinatoRx intends to use the net proceeds from this offering to fund development of its portfolio of clinical and preclinical stage product candidates, for the discovery and development of additional product candidates and for working capital, capital expenditures and other general corporate purposes.