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news.Chelsea Therapeutics has entered into definitive securities purchase agreements with several institutional and accredited investors to raise approximately $48.9 million in a registered direct offering, before placement agent fees and offering expenses.
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At closing, Chelsea will issue approximately 7.4 million shares of its common stock at $6.62, which was the closing price on November 1, 2007. The financing is expected to close on or about November 7, 2007, subject to customary closing conditions.
Ridgeback Capital Management was the lead investor in this financing which also included significant participation from a number of other new and existing healthcare investors. Chelsea intends to use the proceeds from this financing to fund the continued clinical development of CH-1504 including Phase II trials in rheumatoid arthritis, initiation of pivotal Phase III trials of Droxidopa in neurogenic orthostatic hypotension, expansion of its Droxidopa clinical program into other indications, and general working capital.
Leerink Swann served as lead placement agent with Oppenheimer & Co. and Punk Ziegel & Company serving as co-placement agents in this transaction. The shares are being offered pursuant to Chelsea’s effective shelf registration statement previously filed with the securities and exchange commission.