Marina Biotech Announces $6 MM Convertible Preferred Stock Financing and Conversion to Common Stock of the Company’s Promissory Note
Company to Advance Its Preclinical and Clinical Rare Disease Programs
BOSTON, MA–(Marketwired – Feb 24, 2014) – Marina Biotech, Inc. (PINKSHEETS: MRNA), a leading oligonucleotide-based drug discovery and development company focused on rare diseases, announced today that it has entered into a binding term sheet with certain qualified investors, led by Steven T. Newby, a long-time biotechnology investor, for the issuance of convertible preferred stock at a conversion price equivalent to $0.75 per share of common stock resulting in gross proceeds of $6 million. In addition, the Company will issue to the investors warrants to purchase 6 million shares of common stock. The warrants will have an exercise price of $0.75 per share and are exercisable for a period of five years after the Company regains compliance with its reporting obligations under the Securities Exchange Act. The offering is expected to close on or about March 7, 2014, subject to the execution of a customary Securities Purchase Agreement regarding the transaction and the satisfaction of customary closing conditions. The Company also announced that the holders of the Company’s Promissory Note have agreed to convert the remaining principal and interest on the Note to common stock at a conversion price of $0.75 and release their lien on the Company’s intellectual property. Proceeds from the financing will be used to restart certain day-to-day operations, repay the Company’s outstanding obligations, regain compliance with the Company’s Exchange Act reporting obligations and advance the Company’s preclinical and clinical rare disease programs.
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