Cortexyme Announces $125M Private Placement; 2.5M Shares @$50/Share
9:03 pm ET February 5, 2020 (Benzinga) Print
Cortexyme, Inc. (Nasdaq: CRTX) today announced that it has entered into stock purchase agreements with a group of institutional investors and an entity affiliated with a member of the Company's Board of Directors in connection with a private placement of its common stock. The transaction is expected to result in gross proceeds to the Company of $125 million, before deducting placement agent fees and other offering expenses. The Company plans to use the net proceeds from the private placement primarily to advance clinical development, as well as for general corporate purposes.
The Company will issue 2,500,000 shares of common stock for a purchase price of $50.00 per share, which was based upon the volume weighted average price of the Company's common stock since January 1, 2020, and represents a 9.6% premium to the closing price of the Company's common stock on February 5, 2020.
The closing of the private placement is subject to certain conditions and is expected to occur on Monday, February 10, 2020.
BofA Securities and Jefferies served as placement agents for the private placement.
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