Aradigm Corporation has announced the first closing of a private placement of $23 million in senior convertible notes that mature in 2021 and warrants to purchase 263,436 shares of common stock at $5.21 per share, “beginning on the later of 180 days after the date of issuance or the date the company issues a press release announcing data related to the ORBIT-3 and ORBIT-4 Phase 3 pivotal clinical trials for the company’s investigational product Pulmaquin inhaled ciprofloxacin.”
The company initiated the ORBIT-3 and ORBIT-4 trials in 2014 and enrollment was completed in the fall of 2015. Aradigm said that it expects to use the net proceeds, expected to be ~$20.7 million to fund continuing clinical development and regulatory submission for Pulmaquin, along with general corporate purposes.
In its 2015 financial results announcement, Aradigm said that it had used the entire $65 million provided by Grifols for Phase 3 development when Grifols acquired an exclusive license for Pulmaquin in 2013.
Read the Aradigm press release.
