RDEA raised $30.6M in a PIPE announced this morning. (They evidently didn’t have a shelf registration, which would’ve allowed registered shares to be issued.)
The terms: 2.74M units @$11.17, where each unit consists of 1 share and 0.25 warrants exercisable at $11.14 between Jun 2009 and Dec 2013. The warrants clearly make this a below-market deal, but it’s nonetheless impressive that RDEA could raise this much money on these terms in this market.
The PIPE increases the fully-diluted share count by 20%, from 17.3M to 20.7M.
RDEA had $29.5M in cash as of 9/30/08 (#msg-33555492) and they brought in $8M from a loan in November (#msg-33555914). Today’s PIPE thus gives RDEA a cash balance of about $68M less whatever has been burned during 4Q08.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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