MONTREAL, CANADA: BioAmber Inc has priced an underwritten offering of 1,748,750 shares of its common stock at a price of $4.00 per share. The gross proceeds to the company will be approximate $7.0 million, and net proceeds, after underwriting discounts and commissions and other estimated fees and expenses payable by BioAmber, will be approximate $5.6 million.
Additionally, it has conducted a registered direct offering to "permitted investors" in Canada of warrants to purchase an aggregate of 2,224,199 shares of common stock for gross proceeds of approximately $8.9 million. Each warrant entitles the holder thereof to receive one share of our common stock on the exercise or deemed exercise of the warrant.
The warrants are exercisable by the holders thereof at any time for no additional consideration and all unexercised warrants shall be deemed to be automatically exercised following the satisfaction of certain conditions specified in the warrants. Until such warrants are exercised or automatically exercised following the satisfaction of such conditions, the subscription proceeds from this registered offering of warrants will be placed in escrow.
BioAmber intends to use the net proceeds of the underwritten offering and the registered offering of warrants for working capital and other general corporate purposes. The underwritten offering is expected to close on or about December 29, 2016, subject to customary closing conditions and the closing of the registered direct offering.
Rodman & Renshaw, a unit of H C Wainwright & Co, is acting as the sole book-running manager for both offerings. AltaCorp Capital Inc is acting as financial advisor to BioAmber.
Read More: BioAmber prices $7 mn underwritten offering of common stock
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