Boston, MA 02/24/2014 (wallstreetpr) – Marina Biotech Inc (OTCMKTS:MRNA) announced entering into a binding term sheet with biotechnology investors led by Steven T. Newby. It will issue convertible preferred stock at an exchange price equivalent to $0.75 a share of common stock which would fetch it $6 million.
Marina Biotech’s Announcements
Marina Biotech Inc (OTCMKTS:MRNA) is a leader in oligonucleotide based drug discovery and is a development company which focuses on rare diseases. The company today has announced its binding term sheet with Newby who is a long time investor in biotechnology. Apart from this, the company also plans to issue warrants to the investors to buy 6 million shares of the common stock. The warrants will be issued at an exercise cost of $0.75 a share and could be implemented for five years after the company recovers compliance with its reporting mandates under the Securities Exchange Act.
The offering is anticipated to come to a close in March on or by the 7th, which depends on the carrying out of the customary Securities Purchase Agreement concerning the transaction and the approval of customary closing terms.
Marina Biotech Inc (OTCMKTS:MRNA) further announced that the holders of its Promissory Note have consented with converting the rest of the principal and interest on the Note to common stock at an exchange price of $0.75 and have also agreed to release their lien on its intellectual property. Marina Biotech said that the proceeds from the financing, which will be around $6million, will be used in restarting some of its everyday operations, repay its outstanding obligations, and recuperate compliance with the Company’s Exchange Act reporting duty and take forward its preclinical and clinical rare diseases agenda.
Marina Biotech Inc (OTCMKTS:MRNA)’s President and Chief Executive Officer, J. Michael French believes the investment to be of great importance as it would take his company in a new direction, led by the knowledgeable investor.
