Quite the rough morning for Acura Pharmaceuticals Inc. (OTCBB: ACUR) with the big sell-off coming on the heels of its press release and form 8-K issued late yesterday.
Acura Pharmaceuticals entered into a Securities Purchase Agreement (the “Agreement”), with an investor group comprised of Vivo Ventures Fund VI L.P., Vivo Ventures Fund VI Affiliates Fund, L.P., GCE Holdings LLC and certain individual investors (the “Investors”). Pursuant to the Agreement, the Investors purchased 23,605,551 Units (“Units”) at a price of $1.08 per Unit with each Unit consisting of four shares of the Company’s common stock, $0.01 par value, and a warrant to purchase one share of common stock. 13,842,590 of the Units were purchased for cash, with the balance of 9,962,961 Units issued in consideration for the conversion of all of the Company’s $10.544 million in outstanding bridge loan indebtedness. Net cash proceeds to the Company, after expenses relating to closing the transaction, are estimated to be approximately $14.5 million.
