Dallas, Texas 02/24/2014 (FINANCIALSTRENDS) – The $287 million market capped drug maker Peregrine Pharmaceuticals (NASDAQ:PPHM) has announced that it has closed the public offer it had earlier announced to sell close to 700,000 shares of its preferred stock which attracts 10.5 percent interest. It had priced the public offering at $25 per share. The preferred stock share holders have the option to convert their shares into common stock at a price of $3 per share. The firm hopes to raise close to $17.5 million proceeds from this exercise and had retained the services of MLV & Co. LLC as the book running firm for this exercise. The services of “Maxim Group LLC and National Securities Corporation” were retained as lead managers for the offer.
As part of the exercise, Peregrine Pharmaceuticals (NASDAQ:PPHM) has also set aside 105,000 shares of preferred stock as an option to its underwriters in the event of over allotment. The proceeds are expected to serve as funds for its general operations for the current fiscal year.
The press note released by Peregrine Pharmaceuticals (NASDAQ:PPHM) to this effect disclosed that, “ They have filed an application to list the shares of Series E Preferred Stock on the NASDAQ Capital Market under the symbol “PPHMP”. If approved by NASDAQ, trading of the Series E Preferred Stock on the NASDAQ is expected to begin within 30 days after the date of initial issuance of the Series E Preferred Stock. Roth Capital Partners, LLC and Piper Jaffray & Co. served as financial advisors to Peregrine”.
The Tustin based drug maker has accumulated net loss of $28 million from sales worth $23 million in the past 12 months. It has managed to gain traction with respect to sales in the past quarter in which the business grew by 37.5 percent. The stock is currently trading at 11 percent below its 52 week high price point of $2.06 per share.