Idera raises $9.5M in convertible preferred stock offering

Idera Pharmaceuticals, Inc. (Nasdaq: IDRA) today announced it has raised $9.5 million in a convertible preferred stock offering.

In the offering, the Company issued and sold 1,124,260 shares of its convertible preferred stock convertible into 5,621,300 shares of common stock and warrants to purchase 2,810,650 shares of common stock. Each share of convertible preferred stock is convertible into five shares of common stock at a conversion price of $1.6275 per share and warrants are exercisable at $1.6275 per share. The purchase price represents a five percent premium to the closing price of Idera's common stock on Thursday, November 3^rd, 2011.

Idera intends to use the net proceeds from the transaction for general corporate purposes, including continuing to fund development of Toll-like Receptor (TLR) targeted candidates in its autoimmune and inflammatory disease program and its gene-silencing oligonucleotide (GSO) technology.

"Following a thorough strategic review of our programs we have prioritized key areas for our internal investments," said Sudhir Agrawal, D.Phil., Chairman and Chief Executive Officer, Idera Pharmaceuticals. "The proceeds of this financing, in combination with our current financial resources, will support Idera's focused corporate strategy of advancing TLR targeted candidates in our autoimmune and inflammatory disease programs and continuing to invest in our novel GSO discovery platform."