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news.Dendreon has entered into a definitive agreement with an institutional investor to sell eight million shares of its common stock, and warrants to purchase up to eight million shares of its common stock for gross proceeds of approximately $47 million, before deducting placement agent fees and estimated offering expenses, in a 'registered direct' offering.
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The investor has agreed to purchase the shares of common stock and warrants to purchase common stock at a negotiated purchase price of $5.92 per share and a warrant exercise price of $20 per share. The warrants will be exercisable at any time on or after October 8, 2008 and prior to the seventh anniversary of the closing of the transaction.
The transaction is expected to close on or about April 8, 2008, subject to customary closing conditions. The company intends to use the net proceeds from the sale of the shares to fund its commercialization activities for Provenge (sipuleucel-T), including the investment in specialized technology systems; to fund clinical trials for Provenge and other product candidates; to fund other research and preclinical development activities for active immunotherapies and small molecule products; to satisfy third party obligations; and for other general corporate purposes, including working capital.