Under the terms of this agreement, RXi has the option, at its sole discretion, to sell to YA Global Investments newly issued common shares, subject to certain conditions, in increments of up to $500,000 each over a two-year period for a total of up to $25 million in proceeds to RXi.
Tod Woolf, president and CEO of RXi Pharmaceuticals, said: This agreement is particularly well suited to provide RXi with the financial flexibility to move our product programs towards the clinic, while we continue to develop and expand our therapeutic platform.
While we have no immediate intention to draw on this equity facility, we are pleased to have access to potential capital that could strengthen our financial position as we continue our partnering negotiations.
Dr. Michael J. Nowak, head of the Healthcare Group at Yorkville and managing director at Yorkville, a New Jersey based fund with $1 billion of assets under management, led the investment into RXi Pharmaceuticals.
RXi Pharmaceuticals is a discovery-stage biopharmaceutical company following the development and potential commercialization of proprietary therapeutics based on RNA interference (RNAi) for the treatment of human diseases.