La Jolla Pharmaceutical Co (LJPC)

[Dante64]

La Jolla’s immediate plan is to conduct a confirmatory preclinical animal study of LJP1485 that it expects to complete by the end of the second quarter of 2011. If this study is successful, La Jolla will receive approximately $7.4 million upon the mandatory exercise of a portion of its outstanding preferred stock purchase warrants held by existing investors, and the investors will then forfeit their currently exercisable right to demand redemption of approximately $5.6 million of Series C Preferred Stock acquired in May 2010. The proceeds from this warrant exercise, combined with existing cash resources, are then expected to fund the Company’s operations through the completion of a Phase 2a proof-of-concept clinical study of LJP1485. If the Phase 2a study is successful, the balance of the preferred stock purchase warrants will be required to be exercised at that time, raising an additional $3.2 million.

News from April 2011.