Synthetic Biologics Inc. (NYSEMKT: SYN) has just announced the pricing for its secondary offering. The company expects to price its 25 million shares and warrants to purchase 50 million at $1.00 per share and accompany warrants. The company expects to make $25 million from this offering.
If exercised in full, the warrants could result in additional net financing proceeds to the company of $78.8 million. The underwriter has a 30-day option to purchase up to 3.75 million additional shares of common stock and warrants to purchase up to 7.5 million additional shares of common stock. The offering is expected to close on or about November 18, 2016, subject to customary closing conditions.
The only underwriter for this offering is Cantor Fitzgerald, which is also acting as the sole book-running manager.
The initial per-share exercise price of the Series A warrant is $1.43 per share, and the per share exercise price of the Series B warrant is $1.72 per share, each subject to adjustment as specified in the warrants.
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The Series A and Series B warrants may be exercised at any time on or after the date of issuance. The Series A warrants shall not be exercisable after and shall terminate and become void on the four-year anniversary following the date of original issuance. The Series B warrants shall not be exercisable after and shall terminate and become void on December 31, 2017.
Synthetic Biologics is a late-stage clinical company developing therapeutics focused on the gut microbiome. Its shares were trading down nearly 40% at $0.87 on Tuesday. The consensus analyst price target is $6.95, and the 52-week trading range is $0.86 to $3.09.
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