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Replies to post #1499 on Ardelyx Inc (ARDX)
Pursuant to the securities purchase agreement, the Company will issue to purchasers (i) $30 million in shares of the Company’s Series A Convertible Preferred Stock and (ii) three tranches of warrants that are exercisable for convertible preferred stock as follows:
The Tranche A warrants for an aggregate exercise price of approximately $25 million are exercisable until 21 days following the Company’s announcement of receipt of FDA approval for Renazorb;
The Tranche B warrants for an aggregate exercise price of approximately $25 million are exercisable until 21 days following the Company’s announcement of receipt of TDAPA approval for Renazorb; and
The Tranche C warrants for an aggregate exercise price of approximately $50 million are exercisable until 21 days following public disclosure of four quarters of commercial sales of Renazorb following receipt of TDAPA approval.
Shares of Series A Convertible Preferred Stock will be issued at a price of $1,000.00 per share. All of the shares of preferred stock, the warrants and the securities underlying such shares of preferred stock and warrants, are being offered by Unicycive.
Proceeds from the offering will be used to support the Company’s NDA submission with the FDA for approval of Renazorb for the treatment of hyperphosphatemia in the U.S. and, if approved, for the commercial launch of Renazorb in the U.S.
As of the issuance date (March 3, 2023), the estimated fair value of the warrants was $2.8 million, which increased to $13.2 million as of March 31, 2023 based on updated assumptions and inputs.
These recently issued warrants are distinct from the warrants associated with Unicycive's July 2021 initial public offering, which were exercisable for common stock at $6.00 per share for a 5-year period.
The March 2023 warrants represent a more complex instrument tied to the company's financing needs and clinical progress.
