NEW HAVEN: Inside investors have reportedly agreed to pony up another $50 million for Melinta Therapeutics, Inc. [NASDAQ:MLNT], a commercial-stage biotech ] in what will be between $75 and $110 million in a public offering.
The public offering is priced at $5.00 per share, before underwriting discounts and commissions.
The size of the offering was increased from $75 to $110 million and, the underwriters have a 30-day option to purchase up to an additional 2,640,000 shares of common stock from Melinta on the same terms and conditions. The company’s stock closed at $5.30 per share on May 23, 2018, with a market cap of $166
The offering is expected to close on May 29, 2018, subject to customary closing conditions.
Melinta says it will to use the net proceeds for general corporate purposes, including to invest in our industry leading portfolio of antibiotics, including potential expansion of our field sales force to drive growth; invest in our supply chain to optimize manufacturing processes and improve cost of goods; fund future milestone obligations primarily related to receipt of approval of Vabomere™(meropenem and vaborbactam) for European commercialization and payments to The Medicines Company as part of the infectious disease business acquisition; capitalize on potential business development opportunities; and fund working capital.