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Zalicus (ZLCS) Enters $25M Committed Funding Agreement

May 8, 2013 8:38 AM EDT Send to a Friend
Zalicus, Inc. (Nasdaq: ZLCS) has entered into a stock purchase agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”) an institutional investor. Under the terms of the agreement, Zalicus has the right to sell up to $25,000,000 in shares of its common stock to Lincoln Park subject to certain limitations and conditions set forth in the purchase agreement.

Upon executing the agreement, Lincoln Park made an initial purchase of $2.0 million in shares of Zalicus common stock at a purchase price of $0.605 per share. Zalicus has the right, at its sole discretion, over a period of two years to sell up to an additional $23.0 million in shares of its common stock to Lincoln Park under the terms set forth in the agreement. Zalicus will control the timing and amount of any common stock sales to Lincoln Park. The agreement may be terminated by Zalicus at any time, at its sole discretion, without any cost or penalty. Proceeds from any sales of stock will be used for general corporate purposes, including ongoing research and development, and may also be used to repay outstanding indebtedness or to acquire or invest in complementary businesses, products and technologies. A more detailed description of the purchase agreement is set forth in Zalicus’s current report on Form 8-K recently filed with the SEC.




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