Array BioPharma (ARRY) Receives Additional $40 Million Funding Commitment From Deerfield Management

May 19, 2009 4:07 PM EDT

Array BioPharma Inc. (NASDAQ: ARRY) received an additional $40 million funding commitment from Deerfield Management, a healthcare investment organization and one of Array's largest shareholders. This funding commitment is in addition to the $80 million Array previously received from Deerfield in 2008. Together with existing capital, these funds will be available to advance Array's deep pipeline of wholly owned small molecule drug programs in development.

In connection with Array's right to draw the additional funds, Deerfield will receive a transaction fee of $500,000 and Array has exchanged warrants to purchase six million shares of Array's common stock previously issued to Deerfield in connection with the prior facility at an exercise price of $7.54 per share for warrants to purchase six million shares of its common stock at an exercise price of $3.65 per share. In addition, as part of the new agreement, the amount of Cash, Cash Equivalents and Marketable Securities Array is required to maintain under both facilities was reduced from $40 million to $20 million. [SM]

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