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Helicos BioSciences Corp., a Cambridge-based life science company that sells a human genome sequencer, says it will raise about $10 million in a private placement with new and current investors, plus the company’s chief executive officer. Investors include Atlas Ventures, Flagship Ventures, Highland Capital Partners, Versant Ventures and Ron Lowy, the company’s CEO.
Helicos (Nasdaq: HLCS) intends to use the funds for working capital requirements to support its sales and for general corporate purposes. The company had just $8.4 million in cash on hand on June 30th.
“We believe that raising this level of funds is appropriate given the recent demand for the Helicos Single Molecule Sequencing System while we consider our strategic alternatives” said Lowy.
Helicos has agreed to sell an aggregate of up to 1 million units for $2.57 per unit to the existing investors and 3.3 million units to new investors for $2.24 per unit. The units purchased by the existing investors will consist of one share of the company’s common stock and one warrant to purchase 0.662 shares of the company’s common stock at a per share exercise price equal to $2.61 (105 percent of the closing bid price of the company’s common stock on September 15, 2009). The units purchased by the new investors will consist of one share of the company’s common stock and one warrant to purchase 0.50 shares of the company’s common stock at a per share exercise price of $2.61. The warrants will have a five and a half year term and cannot be exercised until six months following the closing of the transaction. The closing of the transaction is expected on or about September 18, 2009.
The units to be issued in the private placement are unregistered.
Helicos’ stock fell 6.4 percent on the news, to $2.34 in morning trading on Wednesday, from $2.50 at the previous close.
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