Under the terms of the purchase agreements, PharmAthene will sell an aggregate of 2.12 million newly issued shares of its common stock at $2.60 per share and warrants to purchase an aggregate of 696,295 shares of its common stock at an exercise price of $3 per share.
The warrants will be exercisable beginning on the six month anniversary of the closing date of the transaction and will expire five years from the date they become exercisable.
The financing is expected to close on or about March 26, 2009, subject to the satisfaction of customary closing conditions. The company intends to use the net proceeds from the transaction for general corporate purposes, including the satisfaction of existing obligations.