TSI Corp. announced that it has financed continued developmentof its four transgenic disease and toxicology animal modelsthrough a $7 million private placement.
The financing involved the sale of units offered jointly by TSIand Exemplar Corp., a new company formed to finance TSI'sresearch and development activities.
TSI and Exemplar sold 280 units priced at $25,000. Each unitconsists of 2,000 shares of callable Exemplar stock and 2,000warrants to purchase an equal number of TSI shares(NASDAQ:TSIN) at $8 per share.
"This allows us to push forward our R&D program aggressivelywithout having the negative effect of R&D expenses falling tothe bottom line," said Munro Pitt, chief financial officer of theWorcester, Mass.-based TSI.
TSI's AIDS rabbit model, which incorporates the human CD4receptor in its white blood cells, will probably be the firstmodel to reach commercialization in 1995, said Pitt. Twomouse models are being developed to evaluate drugs to treatAlzheimer's disease and cancer, and a third for genetictoxicology testing.
The Exemplar units differ from publicly offered units such asNeozyme Corp., Tocor Inc. and Receptech Corp., Pitt said,because of the small size of the deal. TSI decided on a privateplacement instead of a public offering, he said. Exemplar stockwon't be traded, although the warrants will trade when theydetach from the units after July 1, 1992.
In addition, the remaining units of Exemplar shares have fixedbuy-back prices starting at $32,000 before Jan. 31, 1992, andescalating to $104,300 before Jan. 31, 1996. In contrast, thebuy-back provisions of R&D partnerships typically giveinvestors part of their return in cash and stock plus royaltieson sales of products commercialized by the partnership, saidPitt.
TSI stock closed at $8, up 13 cents, on Tuesday. -- KarenBernstein
(c) 1997 American Health Consultants. All rights reserved.