NEW YORK, March 21 - Orchid BioSciences said yesterday that it had received a waiver from Nasdaq, allowing it to go ahead with a private financing of $16 million without seeking shareholders' approval.
Nasdaq granted the exception on the grounds that securing shareholder approval might seriously jeopardize the financial viability of the company.
Orchid intends to sell up to 1,600 shares of newly issued convertible preferred stock, each convertible into approximately 22,222 shares of common stock. Each preferred share in the proposed offering will have a purchase price of $10,000 and will include a warrant to purchase approximately 6,667 shares of Orchid's common stock. The shares in the proposed offering would be convertible into common stock at a conversion price of $0.45, and the warrants would be exercisable at $0.45 per share, according to the company.
The buyers of the new offering will be select institutional investors, Orchid said.
For further information, see the company statement.