A Medical Device Daily
Monogram Biosciences (South San Francisco, California) said it will sell $30 million of 0% convertible senior unsecured notes, due 2026, to a qualified institutional buyer. Gross proceeds will be $22.5 million. Closing of the transaction is expected to occur later today.
The principal amount of the notes will be convertible into shares of Monogram’s common stock at $2.52 a share.
Proceeds of the convertible financing, together with more than $30 million in cash and investments held as of the end of 2006, are expected be used to support commercialization of HIV and oncology assays and for general corporate purposes.
Monogram must file a registration statement registering the notes and the shares of common stock underlying the notes within 60 days of closing. Monogram then will have the option to cause all or any portion of the notes to convert into common stock at such time as the closing price of Monogram’s common stock is greater than $3.15 for 20 out of 30 consecutive trading days and the satisfaction of certain other conditions.
Subject to certain conditions, the notes may be redeemed by Monogram at any time following Dec. 31, 2009, at their accreted value. The holders of the notes may cause Monogram to repurchase the notes on each of Dec. 31, 2011, Dec. 31, 2016, and Dec. 31, 2021, at the principal amount thereof. The notes will be unsecured and subordinated to Monogram’s outstanding senior debt, including the $25 million 3% senior secured convertible note, due May 19, 2010, issued to Pfizer in May 2006 and the company’s line of credit with Merrill Lynch.
Monogram has developed HIV tests designed to help make the complexities of antiretroviral therapy easier to manage. Its phenotype and genotype resistance tests, phenotype+genotype combination test, and viral fitness test help healthcare providers choose the drugs that will provide the greatest benefit and to help get the most out of antiretroviral therapy.
In other financing news:
• NNN Healthcare/Office REIT (Santa Ana, California), said it has accepted subscriptions for 200,846 shares of common stock, or $2,004,030, thereby exceeding the minimum offering of 200,000 shares required to be sold in its offering of up to 200 million shares. Having reached the minimum amount, the offering proceeds were released by the escrow agent and are available to the company for acquisition of properties and other purposes .
On Oct. 4 the company’s board authorized acquisition of: the Crawfordsville Medical Office Park and Athens Surgery Center in Crawfordsville, Indiana, for $6.9 million; and the Southpointe Office Parke and Epler Parke I property in the Southport community of Indianapolis, Indiana, for $14.8 million. NNN said it expects to acquire the two properties about Jan. 19.
Triple Net Properties, sponsor of NNN Healthcare/Office REIT, is a subsidiary of NNN Realty Advisors, a commercial real estate asset management and services firm.