News Column

RXi Pharmaceuticals Gets Up to $20 Million in Financing from Lincoln Park

April 30, 2014

RXi Pharmaceuticals Corp., a biotechnology company focused on discovering and developing therapies addressing unmet medical needs using RNA-targeted technologies, announced that it has entered into a purchase agreement with Lincoln Park Capital Fund, a Chicago- based institutional investor, whereby LPC is committed to purchase up to an aggregate of up to $20 million shares of RXi common stock over a 30-month term.

In a release, the Company said that the funds, in part, will serve to advance research and development activities for its ophthalmological pre-clinical drug pipeline.

Under the terms of the Purchase Agreement, upon execution LPC purchased 500,000 shares of common stock at $4.00 per share, a premium of 7.5 percent based on the closing price of April 21, for an initial investment of $2 million. Concurrent with the execution, the Company issued to LPC 100,000 shares of our common stock as a commitment fee. Upon the filing of the first investigational drug application for an ophthalmologic project with the U.S. Food and Drug Administration, LPC will make an additional $1 million share purchase at prevailing market prices of the Company's common stock. In addition, at the sole discretion of the Company, we may sell up to $17 million worth of common stock to LPC over the 30-month term of the Purchase Agreement.

The Company said that it plans to use the proceeds received for working capital to support the advancement of the Company's ophthalmology franchise and other general corporate purposes.

((Comments on this story may be sent to

For more stories covering the world of technology, please see HispanicBusiness' Tech Channel

Source: Professional Services Close - Up