September 16, 2016 8:37am

HSGX will sell 2,653,553 shares at a price of $2.25 per share and 24,158.8688 shares of newly created Series A Convertible Preferred Stock, which shares of preferred stock are convertible into approximately 10,679,781 shares of common stock.  Purchasers will receive warrants to purchase up to approximately 13,333,334 shares of common stock at an exercise price of $2.25 per share. 

 


 

HSGX has entered into a definitive securities purchase agreement to raise approximately $30 M in a private placement of common stock, Series A Convertible Preferred Stock and warrants exercisable for common stock. 

The warrants will be exercisable following approval of the private placement by Histogenics stockholders and will expire 5 years from the date of such stockholder approval.  The closing of the offering is subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co., LLC served as the sole placement agent in connection with this offering.

 

The Bottom Line: the proceeds raised in the offering along with its existing cash resources should last through the middle of 2018 and enrollment in the NeoCart P3 clinical trial will be completed in Q2/17with topline data on its 1-year primary efficacy endpoint available by the middle of 2018.

Affiliates of certain members of HSGX’ Board of Directors agreed to purchase an aggregate of 283,045 shares of common stock and 2,563.1451 shares of Series A Convertible Preferred Stock in the private placement and will receive warrants to purchase up to 1,422,221 shares of Histogenics’ common stock at an exercise price of $2.25 per share.

This I like …

 

HSGX closed at $3.35 which was UP +$0.04. A $1.10 is a BIG discount to the current share price …

SELL