Array BioPharma Gets $40M Funding Commitment
Wed, 05/20/2009 - 4:44am
BOULDER, Colo. (AP) — Array BioPharma Inc. said Tuesday it received a commitment for another $40 million in funding from one of its largest shareholders. The funding from Deerfield Management, a health care investment organization, adds to the $80 million the group gave Array last year. Array said the money will allow it to advance its pipeline of small molecule drug programs in development. Array said it can tap the additional $40 million between June 29 and September 30 with 15 days notice. Deerfield will get a $500,000 fee in exchange for Array's right to draw down the new funds. Array also swapped warrants it gave Deerfield to purchase 6 million common shares at $7.54 each for new warrants that would let the company buy the shares for just $3.65 each. If Array does draw down the $40 million, it will pay another $500,000 fee and issue six million more warrants. The original and new loans mature on April 29, 2014.