Peregrine Pharmaceuticals (NASDAQ:PPHM) Proposes “Series E Convertible Preferred Stock”


Dallas, Texas 02/07/2014 (FINANCIALSTRENDS) The stock of $252 million market capped biotech firm Peregrine Pharmaceuticals (NASDAQ:PPHM) plummeted by a huge 4.17 percent during trading on 6th February, on the back of news of the drug firm offering preferred stock in the form of a public offer to raise funds.

The public offer constitutes the selling of newly issued “10.50% Series E Convertible Preferred Stock” via a underwritten public offering in which the underwriters have been granted a 30 day option to purchase an additional 15 percent of the total number of Series E preferred shares on offer. The net proceeds which are going to be raised from this exercise are going to be used for general operational and corporate purposes.

Peregrine Pharmaceuticals (NASDAQ:PPHM)  has retained the services of MLV & Co. LLC as the sole  book-running managers and appointed the trading firms Maxim Group LLC and National Securities Corporation as co-managers in this public offering.

Peregrine Pharmaceuticals (NASDAQ:PPHM)  which is headquartered in Tustin, CA is a drug firm which is focused on developing newly engineered monoclonal antibodies which are being put through their paces in ongoing clinical trials to treat various forms of Cancer. The most potential of its drug pipeline is target drug “bavituximab” for which it is seeking a deep pocketed partner to help it in completing the FDA approval process and take it into the commercialisation phase as a cure for brain cancer. The drug maker has generated sales of $23 million over the past 12 months and has generated net loss of $28.8 million.

Post the announcement of this public offering, the stock price of Peregrine Pharmaceuticals (NASDAQ:PPHM) has been trading at $1.61, which is 33.7 percent lower than its 52 week high price point of $2.43 and it 45 percent above its 52 week low price of $1.11 per share.