Arena Pharmaceuticals to Receive $60 Million from Deerfield Management

by Zagros on August 6, 2020

Arena to Use $30 Million of Proceeds to Prepay Outstanding Debt -

SAN DIEGO, Aug. 6, 2010 /PRNewswire-FirstCall/ — Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) announced today that it has agreed to sell a total of 8,955,224 shares of its common stock, at a price of $6.70 per share, in a registered direct public offering to entities affiliated with Deerfield Management, a healthcare investment organization. Arena expects to receive gross proceeds, before expenses, of approximately $60 million. The closing of the offering is expected to take place on or before August 10, 2020.

Arena will use $30 million of the proceeds from this offering to prepay the portion of the loan principal that otherwise would have been required to be repaid in July 2012 under the existing Facility Agreement between Arena and Deerfield. Arena and Deerfield also amended the Facility Agreement to defer the $20 million principal repayment required to be made in July 2011 until June 17, 2020, subject to Arena receiving US Food and Drug Administration, or FDA, approval by the July 2011 repayment date to market and sell lorcaserin, which is Arena’s lead drug candidate for weight management. The FDA has assigned a PDUFA date of October 22, 2020, for review of the lorcaserin New Drug Application.

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