A Medical Device Daily

Arrowhead Research (Pasadena, California) reported agreements to sell nearly 2.85 million units consisting of restricted common stock and warrants to purchase restricted common stock to a large institutional money manager, York Capital Management and select accredited investors.

The financing, expected to close this week, will result in gross proceeds to Arrowhead of about $16.5 million.

The investors will purchase 2,849,446 newly-issued shares of stock at $5.78 a share. Additionally, they will receive warrants to purchase another 712,362 shares of restricted common stock at $7.06 a share.

The company said that the funds are expected to be used primarily to expand operations at its Unidym (Los Angeles) subsidiary and to make new investments in nanotechnology ventures.

Unidym this past April merged with Carbon Nanotechnologies (Houston), a manufacturer of carbon nanotubes.

"Since our original investment last year, Arrowhead has made demonstrable progress in each of their businesses," said Alexander Klabin of York Capital.

R. Bruce Stewart, chairman of Arrowhead, said that the company "is well capitalized to continue to implement its current business plan."

Global Crown Capital acted as the exclusive placement agent for the private placement.

Arrowhead is a nanotechnology company commercializing new technologies in the areas of life sciences, electronics, and energy.

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