Memory Pharmaceuticals has exercised its option to complete the third and final tranche following the achievement of a predefined milestone related to the Phase IIa trial of R3487/MEM 3454 in cognitive impairment associated with schizophrenia.
Under the terms of the financing agreement, the shares were priced at a 17% premium to the average closing sale price of the company’s common stock for the 10 days ending on the day of the company’s achievement of the specified milestone.
Memory has previously entered into an equity financing agreement with the investment group led by Stanley Medical Research Institute (SMRI) for the sale of up to $6 million of common stock in three tranches.
The company closed the first $2 million tranche in June 2007, and exercised its option to secure an additional $2 million in a second tranche in June 2008. With this announcement, the company has received the maximum $6 million under the equity financing agreement with SMRI.
Vaughn Kailian, president and CEO of Memory Pharmaceuticals, said: “We appreciate SMRI’s long-standing support for this program and we are pleased that we have once again been able to translate our progress into an opportunity to raise capital at a premium.”