NEW YORK, April 2 - Orchid Biosciences of Princeton, NJ, today announced the completion of a $16 million private financing.
With the blessing of Nasdaq, which last week allowed the company to retain its listing until June 24, and previously granted an exemption for conducting this private financing without shareholder approval, Orchid sold a new issue of convertible preferred stock to a group of institutional investors.
The company said that the investors in the private fund-raise included BayStar Capital of LarkSpur, Calif., and SDS Capital Partners of Old Greenwich, Conn.
Orchid received a delisting warning notice from Nasdaq on Jan. 3 after trading below $1.00, the minimum bid price required for continued listing on the exchange, for several months. The company appealed and a hearing before a Nasdaq listing qualifications panel was held in February.
Orchid sold 1,600 shares of newly issued convertible preferred stock, each convertible into approximately 22,222 shares of common stock. Each preferred share will have a purchase price of $10,000 and include a warrant to purchase approximately 6,667 shares of Orchid's common stock. The shares 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.