Concert Pharma Stock Surges On $65M Financing From Healthcare Funds
Benzinga · 11/04/2021 08:48
Concert Pharmaceuticals Inc (NASDAQ:CNCE) has agreed with BVF Partners L.P. and RA Capital Management to raise gross proceeds of $65 million.
In addition, Concert will potentially receive an additional $103 million upon the full exercise of warrants being issued in connection with the agreement.
The financing will close by November 5.
With the $65 million financing, Concert now expects to fund its operations into the fourth quarter of 2022.
Related Link: Concert Pharma Sees US Application Submission For Patchy Hair Loss Candidate In 2023.
The financing consists of selling common and preferred stock, warrants, and a portion of Concert's right to receive potential future AVP-786 royalties under an existing licensing agreement with Avanir Pharmaceuticals Inc (Avanir).
As part of the financing, BVF and RA will receive an aggregate of 16.25 million common stock equivalents, warrants to purchase up to 8.125 million shares at an exercise price of $5.34 per share, and warrants to purchase up to 8.125 million shares at $7.35 per share.
Price Action: CNCE shares are up 26% at $3.63 during the premarket session on the last check Thursday.
