News Column

TENGION INC FILES (8-K) Disclosing Unregistered Sale of Equity Securities

July 1, 2014



Item 3.02. Unregistered Sales of Equity Securities.

On July 1, 2014, Tengion, Inc. (the "Company") issued 1,453,069 shares (the "2012 Interest Shares") of common stock, par value $0.001 (the "Common Stock"), to holders (the "2012 Investors") of senior secured notes (the "2012 Notes") issued in connection with the Company's private placement completed on October 2, 2012 (the "2012 Financing"). On February 14, 2013, the Company and the 2012 Investors entered into amendments to the terms of the 2012 Financing which gave the Company the option to pay interest payments on the 2012 Notes with Common Stock. In addition to issuing the 2012 Interest Shares, the Company issued warrants to purchase 567,253 shares of Common Stock for nominal consideration (the "2012 Interest Warrants") to certain of the 2012 Investors. The 2012 Interest Warrants were issued in lieu of shares of Common Stock that would have brought certain of the 2012 Investors above the 9.985% ownership limitation established pursuant to the 2012 Financing. The Company issued the 2012 Interest Shares and the 2012 Interest Warrants to satisfy $361,637.78 in interest obligations due on July 1, 2014.

Also on July 1, 2014, the Company issued 1,580,444 shares (the "2013 Interest Shares" and collectively with the 2012 Interest Shares, the "Interest Shares") of Common Stock to holders (the "2013 Investors" and collectively with the 2012 Investors, the "Investors") of senior secured notes (the "2013 Notes") issued in connection with the Company's private placement completed on June 28, 2013 (the "2013 Financing"). The terms of the 2013 Financing give the Company the option to pay interest payments on the 2013 Notes with Common Stock. In addition to issuing the 2013 Interest Shares, the Company issued warrants to purchase 759,773 shares of Common Stock for nominal consideration (the "2013 Interest Warrants" and collectively with the 2012 Interest Warrants, the "Interest Warrants") to certain of the 2013 Investors. The 2013 Interest Warrants were issued in lieu of shares of Common Stock that would have brought certain of the 2013 Investors above the 9.985% ownership limitation established pursuant to the 2013 Financing. The Company issued the 2013 Interest Shares and the 2013 Interest Warrants to satisfy $418,898.73 in interest obligations due on July 1, 2014.

The Interest Shares accounted for 12.2% of the Company's issued and outstanding Common Stock as of July 1, 2014. The Interest Shares and the Interest Warrants were issued pursuant to the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and the regulations promulgated thereunder. All of the Investors are either accredited investors (as defined in the Securities Act) or are located outside of the United States and no public solicitation was involved in connection with the issuance of the Interest Shares or the Interest Warrants.

References herein to the 2012 Financing documents and their terms are qualified in their entirety by the form of such documents as filed as exhibits to the reports on Form 8-K filed by the Company on October 4, 2012, January 7, 2013, February 4, 2013 and February 14, 2013, which documents and exhibits are incorporated herein by reference. References herein to the 2013 Financing documents and their terms are qualified in their entirety by the form of such documents as filed as exhibits to the report on Form 8-K filed by the Company on July 5, 2013, which documents and exhibits are incorporated herein by reference.

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Source: Edgar Glimpses


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