NEW YORK (GenomeWeb News) – Pacific Biosciences has filed a prospectus for the resale of up to 5.5 million shares of its stock, issuable upon the exercise of warrants.
The Palo Alto, Calif.-based company is not selling any securities under the prospectus, and while it will receive no proceeds from the sale of shares issuable upon exercise of the warrants, it could receive gross proceeds of about $14.5 million if all of the warrants are exercised for cash, PacBio said in its document filed with the US Securities and Exchange Commission on Tuesday.
Last month, PacBio entered into a facility agreement with Deerfield Management Company whereby PacBio issued seven-year warrants to purchase 5.5 million shares of its common stock at an exercise price of $2.63 per share. The warrants are part of a broader deal between the firms that provided PacBio with $20.5 million in debt financing.
Any funds achieved by exercise of the warrants will go toward general corporate purposes, but Deerfield does not have to exercise its warrants, PacBio said.