Deerfield Management has agreed to provide an additional $40 million to Array BioPharma to fund its drug development work and add some fresh confidence as the developer pursues new partnership deals. That money is in addition to the $80 million that Deerfield provided to Array last year.
In the deal, Deerfield pockets a $500,000 transaction fee and gets warrants to buy six million common shares at $3.65 a share, which was renegotiated from the $7.54 per share price agreed to last year. Array's stock closed at $3.32 on Tuesday. And if Array taps the money, the interest rate it is paying on the $80 million loan drops from 8.5 percent to 7.5 percent. That 7.5 percent rate also applies to the new $40 million loan.
"These additional funds will allow us to aggressively advance our development pipeline and enhances our position in ongoing partnering discussions," said CEO Robert E. Conway.
- check out the press release
- read the report from Reuters