ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company developing genetically-targeted therapies for atrial fibrillation, heart failure and other cardiovascular diseases, today announced that it has agreed to sell approximately $3 million of its common stock and warrants to institutional investors in a registered direct offering. ARCA will issue an aggregate of approximately 1.68 million shares of common stock to investors together with warrants to purchase approximately 1.18 million shares of common stock. All of the securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein.
Each unit, consisting of one share of common stock and a warrant to purchase 0.7 of a share of common stock, will be sold at a purchase price of $1.785, which is a 15% discount to the consolidated closing bid price of $2.10 for the common stock as reported on the Nasdaq Capital Market on April 15, 2011. The warrants are exercisable beginning six months after the closing of this transaction, expire 5 years after becoming exercisable and have an exercise price of $2.52 per share.
The Company intends to use the net proceeds of this financing for research and development, working capital and general corporate purposes. The offering will close on or before April 21, 2011.
Roth Capital Partners acted as placement agent for the offering.
Integrating social determinants of health to enhance heart failure risk prediction