Somaxon Pharmaceuticals to Raise $3.0 Million in Registered Direct Offering
Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX) today announced that it has entered into definitive agreements to sell approximately 9.4 million shares of its common stock and warrants to purchase up to approximately 4.7 million shares of its common stock to institutional investors at a combined public offering price of $0.32 per share and per warrant for aggregate gross proceeds of approximately $3.0 million. The warrants will have an initial exercise price of $0.46 per share, will be exercisable commencing six months and one day from the date of issuance and will expire on the fifth anniversary of the initial exercise date.
The company plans to use the net proceeds from the offering for general corporate purposes, including its ongoing commercial activities relating to Silenor®, for capital expenditures and working capital and for intellectual property protection and enforcement matters. The company may also use a portion of the net proceeds from the offering to acquire or invest in complementary businesses, technologies, product candidates or other intellectual property, although it has no present commitments or agreements to do so. The offering is expected to close on or about July 24, 2012, subject to the satisfaction of customary closing conditions.
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