A Medical Device Daily
Rockwell Medical Technologies (Wixom, Michigan) reported that it has obtained commitments from institutional investors to purchase an aggregate of 2.84 million shares of Rockwell's common stock and warrants to purchase up to 1,079,200 shares of common stock in a registered direct offering for gross proceeds of about $22 million, before deducting placement agents' fees and estimated offering expenses.
The purchase price per unit, consisting of one share and a warrant to purchase 0.38 shares, is $7.75. The warrants will have a five-year term from the date of issuance, will be exercisable beginning six months after the date of issuance, and will be exercisable at a price of $9.55 per share.
Rockwell anticipates that the net proceeds from the offering of about $20.5 million will be used for general corporate purposes, which may include funding of clinical trials and regulatory activities for soluble ferric pyrophosphate, a licensed drug therapy for the delivery of iron supplementation for anemic dialysis patients, and other research and development expenses, and general and administrative expenses. The closing of this offering is expected to occur on or about Oct. 5, 2009, subject to satisfaction of customary closing conditions.
JMP Securities served as lead placement agent and Wedbush Securities served as co-placement agent for the offering.
Rockwell develops renal drug therapies and devices focused on improving the quality of care for dialysis patients.
• DST Systems (Kansas City, Missouri) said it has entered into separate privately negotiated exchange agreements under which it will exchange $190.4 million in aggregate principal of the company's outstanding 4.125% Series A convertible senior debentures due 2023 for $190.4 million in aggregate principal of new 4.125% Series C convertible senior debentures due 2023. The new debentures are convertible under certain circumstances by holders into shares of DST common stock per $1,000 original principal amount of debentures at an initial conversion rate of 20.3732 shares (subject to adjustment in certain events). This is equivalent to an initial conversion price of $49.08 a share for the new debentures.
Shares of the company's common stock, into which the new debentures are convertible, have been reserved for issuance by the company and listed on the New York Stock Exchange. Holders of the new debentures have the option to require the company to purchase the notes on Aug. 15, 2014 and certain subsequent dates, and in certain other circumstances, at a price equal to the accreted principal amount of the Series C debentures to be purchased plus any accrued and unpaid interest. The company has the right to redeem the new debentures beginning Aug. 15, 2013.
DST provides sophisticated information processing, computer software services and business solutions to the financial services, communications, and healthcare industries.
• Urologix (Minneapolis) received approval on Oct. 1, 2009 from The Nasdaq Stock Market to transfer the listing of its common stock from The Nasdaq Global Market to The Nasdaq Capital Market. This resolves the Notice of Deficiency reported on Sept. 17, 2009. The company's common stock will continue to be traded under the symbol ULGX and trading of its common stock will be unaffected by this transfer. The transfer to The Nasdaq Capital Market will be effective as of the opening of business on Oct. 5.