Galena Biopharma Price Public Offering Of 17.50 Mln Units At $2.00 Per Unit

(RTTNews) - Galena Biopharma Inc. (GALE) announced Friday that it has priced an underwritten public offering of 17.50 million units at a public offering price of $2.00 per unit, resulting in gross proceeds of $35.00 million.

Each unit consists of one share of common stock, and a warrant to purchase 0.35 of a share of common stock at an exercise price of $2.50 per share. The warrants are immediately exercisable and expire on the fifth anniversary of the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately.

The offering is expected to close on September 18, 2013, subject to the satisfaction of customary closing conditions.

The company has granted the underwriters a 30-day option to purchase up to 2.62 million additional shares of common stock and/or additional warrants to purchase up to 918,750 shares of common stock to cover over-allotments, if any.

The firm stated that it intends to use the net proceeds of the offering for the commercialization of its first commercial product, Abstral (fentanyl) Sublingual Tablets, and its ongoing Phase 3 NeuVax (nelipepimut-S) PRESENT (Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment) clinical trial, other clinical trials of its product candidates, and general corporate purposes.