NEW YORK (GenomeWeb News) — Clinical Data today said that affiliates of company chairman RJ Kirk exercised warrants for $3.7 million in shares.
The purchase for 190,505 shares of the company’s common stock, valued at $19.45 a share, came from warrants issued in June 2006, the company said.
Clinical Data President and CEO Drew Fromkin said the cash “strengthens the company’s balance sheet and provides additional liquidity” to support the third phase of clinical trials for Vilazodone, among other projects.
The company may also use the cash to invest in new technology development, new IP, and “other strategic assets,” Ballantyne added.
The extra money will “substantially enhance shareholder value in the event of positive Phase III results,” said senior vice president and CFO Evan Ballantyne.
Ballantyne said the company expects that value to increase if it manages to identify genetic markers for use in a Vilazodone companion diagnostic test.