Somatix announces completion of financing.ALAMEDA Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. , Calif.--(BUSINESS WIRE)--June 29, 1995--Somatix Therapy Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SOMA) announced today that it had closed its previously announced private placement of units of preferred and common stock, in the aggregate amount of $16.5 million. In conjunction with the closing of the common stock portion of the financing, the company has registered the resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of the common shares, including the common shares underlying the related warrants, on an S-3 registration statement that became effective after the close of trading yesterday. The financing consisted of $10.1 million of common stock units and $6.4 million of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. units. The units of common stock were priced at $3.68, and consist of one share of common stock and a warrant to purchase 0.56 shares of common stock. The units of preferred stock were priced at $25.00, and consist of one share of 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". , convertible into 6.25 shares of common stock, and warrants for 3.5 shares of common stock. In both cases, the warrants have exercise prices of $4.00, and are exercisable after 60 days until the third anniversary of closing. The preferred stock has been sold as a private placement and is exempt from the Securities Act of 1933, however, the company has agreed to register the shares of common stock underlying the preferred stock and related warrants for resale within 60 days of closing. Somatix Therapy Corporation is a leader in the field of gene therapy. The company intends to research, develop and commercialize proprietary processes for the genetic modification of cells and their use in the treatment of human disease. Somatix' assets include its highly efficient gene transfer technology, broad-based intellectual property and product development programs focused on cancer, neural diseases and hemophilia hemophilia (hē'məfĭl`ēə,–fēl`yə), genetic disease in which the clotting ability of the blood is impaired and excessive bleeding results. . CONTACT: Somatix Therapy Corporation, Alameda Mark Bagnall, 510/748-3064 |
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