Icagen to make private placement with Pfizer
Shares of Icagen, Inc. (Nasdaq: ICGN) are soaring in pre-market trading this morning following news that the biopharmaceutical company has entered into a definitive purchase agreement with Pfizer (NYSE: PFE) for the private placement of up to $15 million of Icagen common stock.
Icagen said it will sell 2,688,172 shares of common stock at a price of $1.86 per share to Pfizer, which will generate approximately $5.0 million in proceeds for the small-cap.
Additionally, under the terms of the agreement, Icagen has the option to sell Pfizer up to an additional $10 million of common stock at fair market value at the time of exercise, at any time during the next 18 months.
Icagen said it intends to use the proceeds from this private placement to fund R&D and for general corporate purposes. Icagen said it expects the first closing of the transaction to occur on August 20.
Shares of Icagen surged 107.8%, or $2.07, to $3.99 in pre-market trading.
