York County-based Unilife Corp. said it is selling 11 million shares of its common stock to the public at a price of $3.75 per share.
The net proceeds are expected to be just shy of $38.8 million, the maker of injectable drug delivery systems said in a news release this morning. Unilife hired Jefferies LLC and Piper Jaffray & Co. as joint book-running managers for the offering, according to the release. The underwriters have been given a 30-day option to buy up to up to an additional 1,650,000 shares of Unilife’s common stock.
The offering is expected to close Wednesday, subject to customary closing conditions, according to the release.
The cash will be invested in the company’s plant, equipment, systems and personnel to meet current and future demand, plus for general corporate purposes, including working capital, acquisitions and other business opportunities according to the release.
Messages left for Unilife spokesmen were not immediately returned.
In a preliminary prospectus filed with the U.S. Securities and Exchange Commission, the company estimates that a private placement in Australia will close at the same time as its public offering. It was not clear the size of that offering.
As of 10 a.m., Unilife’s stock price on the NASDAQ, traded under the ticker UNIS, was $4.12, down $0.32, or 7.24 percent. The price on the ASX, traded under the ticker UNS, was just over $0.72 when converted to U.S. currency.
The company has had a rocky few years, but signed several deals in the past 12 months.
Most recently, on Jan. 15, it entered into a definitive global strategic agreement with AbbVie Inc. for the customization of our injectable drug delivery systems for use with AbbVie’s drug portfolio, according to the prospectus.
The document further states that AbbVie has agreed to pay Unilife $5 million for the exclusive right to negotiate to form and enter “mutually-agreeable commercial supply agreement.”
Though not finalized, the company estimates it ended the second quarter on Dec. 31 with about $10.8 million of cash and cash equivalents, which includes restricted cash, according to the prospectus. It estimated revenue at $5.4 million for the quarter.