Friday, February 20, 2009

Ariad makes $24.3M in stock sale

By Mass High Tech staff

Cambridge-based oncology therapies company Ariad Pharmaceuticals Inc. has announced that it will sell almost 20 percent of its current outstanding common stock shares to certain new and existing investors for about $24.3 million in financing.

The registered direct financing involves 14.3 million shares of the company’s common stock, at $1.69 per share as of the closing price on Thursday. Following agency fees and offering expenses, Ariad can expect to take in about $22.8 million, company officials reported.

The financing deal also includes three quarters of a warrant , at $2.15 per share for each common stock share. The three-year warrants may be used six months after they’ve been issued to investors.

Lazard Capital Markets LLC operated as the placement agent for the deal.

Ariad (Nasdaq: ARIA) discovers and develops small-molecule drugs to regulate cell-signalling for the treatment of cancer.

Ariad last made news in December when four independent board members for the company resigned simultaneously, citing “vigorous disagreements” with the CEO and chairman, Harvey Berger, in areas related to corporate policy, professional ethics and corporate governance.