ARIAD Completes $5 Million Private Placement.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Nov. 12, 1998--ARIAD Pharmaceuticals, Inc. (Nasdaq: "ARIA") today announced that it has completed a private placement of 5,000 shares of Series C Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". to a group of institutional investors and received proceeds of approximately $5,000,000. Each share of Series C Convertible Preferred Stock has a stated value Stated Value A value that, instead of being par value, is assigned to a corporation's stock for accounting purposes. Stated value has no relation to market price. Notes: of $1,000, plus an accrual amount equal to 5% per annum Per annum Yearly. , and is convertible into common stock of the Company beginning approximately three months after the initial closing, at a conversion price equal to the lower of a Variable Conversion Price or a Maximum Conversion Price. The Variable Conversion Price for any given conversion will be based on the average of the four lowest closing bid prices for the common stock during the 22 trading days preceding the date of conversion. The Maximum Conversion Price for all conversions will be 120% of the Variable Conversion Price at a date to be selected by the Company within such three-month period. Under certain circumstances, the investors and the Company each have rights to increase the amount of this investment and, at certain prices, the Company may elect to redeem any preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. that are presented for conversion. ARIAD ARIAD Allison Research Index of Art and Design is required to file a registration statement on Form S-3 with the Securities and Exchange Commission in order to register the common stock underlying the Series C Convertible Preferred Stock sold in the transaction. Promethean Investment Group, L.L.C., a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of based fund management group, advised the investors in the transaction. Proceeds from the private placement will be used to fund the Company's drug development activities, including preclinical studies preclinical studies, n.pl a term used to describe research done before a clinical study. May be laboratory or epidemiologic research. and, if successful, planned clinical trials, for working capital and for general corporate purposes. "We are pleased to welcome a prominent group of new institutional investors in ARIAD", said Harvey J. Berger, M.D., chairman and chief executive officer. "This private placement strengthens our financial position and provides additional resources to advance the Company's regulated gene expression products toward clinical development." ARIAD Pharmaceuticals is engaged in the discovery and development of orally administered therapeutics based on signal transduction technology. The Company is developing small-molecule drugs that block intracellular signaling pathways that play a critical role in major diseases including osteoporosis and immune-related disorders. ARIAD is also developing ARGENT ar·gent n. 1. Heraldry The metal silver, represented by the color white. 2. Archaic Silver or something resembling it. (tm), a proprietary regulated gene expression technology for orally active protein therapy. Some of the matters discussed in this news release may be forward-looking statements that involve risks and uncertainties. Risks and uncertainties include, but are not limited to risks and uncertainties regarding the success of the Company's preclinical studies, the ability of the Company to commence clinical trials and the success of such clinical trials, as well as risks and uncertainties relating to economic conditions, markets, products, services and prices, and other factors discussed under the heading "Cautionary Statement Regarding Forward-Looking Statements" in ARIAD's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1997 filed with the Securities and Exchange Commission. |
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