Arrowhead Research Gets Private Equity InfusionMonday, May 6, 2013
Arrowhead Research Corp. on Monday said that it raised $36 million in a private offering.
The Pasadena company is developing several early-stage biotech drugs to treat cancer, obesity and hepatitis.
Chief Executive Chris Anzalone said that the offering should provide enough cash to operate into 2015.
“Our strengthened balance sheet allows us to accelerate our pipeline,” Anzalone said in a statement.
The offering came through a private investment in public equity, or Pipe. It included common and convertible preferred stock issued at a discount. Arrowhead issued 14.3 million shares of common stock at $1.83 a share, plus preferred stock that can later be converted to common shares at the same price.
The financing was led by RA Capital, and included new investors Camber Capital, Special Situations Fund and Aquilo Capital. Existing investors Sabby Capital, Sphera Global Healthcare Fund and Jim Mellon also participated.
Shares on Monday closed down 7 cents, or 3 percent, to $2.01 on the Nasdaq.