Metabolix, Inc. MBLX, an advanced biomaterials company focused on sustainable solutions for
the plastics and chemicals industries, today announced that it has entered
into an agreement with Jack W. Schuler, Oracle Investment Management, Inc.,
Birchview Capital, certain members of the Company's Board of Directors and
executive management team, and other investors for the sale of an aggregate of
$25 million of Company securities.
The closing of the proposed financing is subject to the Company obtaining a
financial viability exception from certain NASDAQ shareholder approval
requirements under Rule 5635(f) of the NASDAQ Stock Market Listing Rules, as
well as other customary closing conditions. At closing, the investors will
purchase an aggregate of 50 million units of the Company's securities at a
price of $0.50 per unit. Each unit will consist of one share of the Company's
Common Stock and one one-thousandth (1/1,000) of a share of the Company's
to-be-designated Series B Convertible Preferred Stock. Each share of Preferred
Stock issued in the transaction will automatically convert into 1,000 shares
of Common Stock upon the effectiveness of the filing of a charter amendment to
increase the number of shares of the Company's authorized Common Stock to not
less than 150,000,000. The purchase of the shares by the investors represents
a purchase price of $0.25 per share of Common Stock on an as-converted basis.
Earlier in 2014, the Company indicated it would seek to raise $50 to $60
million to fund its business plan and that such financing might be
accomplished in stages. Proceeds from this transaction will be used to
continue executing the Company's business plan, including its efforts to
secure intermediate production capacity, build relationships with key
customers and intensify the Company's focus on application and product
development for Metabolix PHA specialty biopolymers.
"We look forward to completing this important first step in our financing
plan," said Joseph Shaulson, President and Chief Executive Officer. "This
funding enables us to continue pursuing our manufacturing, commercial and
technical initiatives, which are integral to building a successful specialty
materials business based on PHA biopolymers. We also appreciate the vote of
confidence being shown in the Company by these experienced biotechnology
investors, and we look forward to deploying their investment to create value
for all Metabolix shareholders. Finally, I'd like to thank my colleagues at
Metabolix, who showed tremendous dedication to the Company and remained
focused on our customers and business plans while we worked to secure this
capital."
In a separate press release issued today, Metabolix announced plans to report
second-quarter 2014 results following the market close on August 6, 2014. The
Company will host a conference call to discuss those results and the financing
at 4:30 p.m. ET that day.
These securities have not been registered under the U.S. Securities Act of
1933, as amended (the "Act"), and may not be offered or sold in the United
States unless registered under the Act or unless an exemption from
registration is available. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of
securities in any State in which such offer, solicitation or sale would be
unlawful.
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