January 12, 2018 2:18pm
Intrexon (XON) is up +$1.08
AquaBounty Technologies (AQB), a majority-owned subsidiary of Intrexon (XON), has priced an underwritten public offering of an aggregate of 3,692,307 shares of common stock together with warrants to purchase up to 3,692,307 shares of common stock, at an offering price of $3.25 per share and associated warrant.
AquaBounty has granted the underwriter a 30-day option to purchase up to 553,846 additional shares of common stock and/or additional warrants to purchase up to 553,846 shares of common stock, at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about January 17, 2018, subject to satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the sole book-running manager for this offering.
The warrants have an exercise price of $3.25 per share of common stock and a term of five years, exercisable on the date of issuance. The aggregate gross proceeds AQB are approximately $12 M, before deducting underwriting discounts and commissions and estimated offering expenses and assuming no exercise of the warrants and no exercise of the underwriter’s option to purchase additional shares and/or warrants.
AQB intends to use the net proceeds of this offering to continue construction and renovation activities of its existing facilities in Rollo Bay and Indiana, for working capital costs associated with growing its first batches of fish at our Indiana and Rollo Bay farm sites, and other general corporate purposes, including investing further in its sales and marketing and research and development efforts and payment of anticipated