From Earlier: Tekmira Updates Financial Guidance: Cash Runway Further Extended Into Second Half of 2013
Tekmira Pharmaceuticals Corporation (Nasdaq: TKMR) has updated its financial guidance and now expects its cash runway will extend into the second half of 2013. The extension of the cash runway includes continued revenue from collaboration partners, prudent management of expenses, access to a term loan from Silicon Valley Bank announced in December 2011, and net proceeds from a private placement equity offering completed today.
"We are very pleased with the continued strong support from our financial and collaboration partners and significant interest from investors in the equity offering completed today. This support puts Tekmira in a strong financial position to continue investment in our product candidates and in our industry leading LNP technology," said Dr. Mark J. Murray, Tekmira's President and CEO.
"As it relates to the ongoing litigation against Alnylam Pharmaceuticals, Inc. and AlCana Technologies, Inc., we believe our strong balance sheet will support our efforts to regain control of our proprietary LNP technology and preserve its full value for our shareholders. As we announced previously, we now have a trial date set for October 30, 2012 in Massachusetts Superior Court, and we continue to take the appropriate steps to ensure that Tekmira can pursue this lawsuit to completion without interruption to our core business activities," added Dr. Murray.
Tekmira announced that it has closed a private placement of units for gross proceeds of approximately Cdn$4 million. Each unit, priced at Cdn$2.20, consists of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of Cdn$2.60 for a period of five years from closing. Tekmira intends to use the net proceeds of the offering for general corporate purposes. The common shares issued pursuant to the private placement are subject to a four-month hold period that expires on June 30, 2012.
Tekmira ended December 31, 2011 with cash and cash equivalents of approximately Cdn$9.2 million. In December 2011, Tekmira secured a US$3.0 million loan from Silicon Valley Bank. The loan may be drawn down at the discretion of the Company at any time prior to September 30, 2012. The loan matures on June 30, 2015 and carries a fixed interest rate of 8% annually. If Tekmira chooses to draw down on the loan, principal and interest payments will be made monthly starting on October 1, 2012. Tekmira has not yet drawn down on the loan. The loan is secured by the assets of the Company and does not include any financial covenants.
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