Arrowhead Research (ARWR) Increases Ownership in Unidym to 70%
Arrowhead Research Corporation (NASDAQ: ARWR) has completed the first phase of a plan to increase its ownership in electronics films subsidiary, Unidym Inc., a strategy that was initially announced at its annual shareholder meeting on March 26, 2009. On July 15, 2009, Arrowhead agreed to a stock swap transaction with existing Unidym shareholders, the most recent in a series of transactions that increased Arrowhead's ownership of Unidym to 70%. This follows recent milestones achieved by Unidym, including progress toward commercialization in target displays markets, expanding its partnership model and aggressively reducing cash burn.
The transactions consist of:
The agreement on July 15, 2009 to exchange approximately 750,000 shares of newly issued Arrowhead common stock in exchange for an equal number of Unidym Series C preferred stock with Unidym stockholders;
The issuance and exchange of approximately 1.9 million shares of Arrowhead common stock for approximately 1.1 million shares of Unidym Series C Preferred Stock and 833,333 shares of Unidym Series C-1 Preferred Stock effective June 25, 2009;
The investment by Arrowhead of approximately $875,000 of cash and the conversion of $950,000 of intercompany loans into Unidym Series C-1 Preferred Stock on May 12, 2009 and June 25, 2009; and
The issuance and exchange of approximately 1.3 million shares of Arrowhead common stock to several Unidym stockholders for an equal number of Unidym Series A Preferred Stock completed June 11, 2009.
Pursuant to the agreements, the Arrowhead stock issued in the exchanges may not be sold for one year from the date of each agreement. [SM]
The transactions consist of:
The agreement on July 15, 2009 to exchange approximately 750,000 shares of newly issued Arrowhead common stock in exchange for an equal number of Unidym Series C preferred stock with Unidym stockholders;
The issuance and exchange of approximately 1.9 million shares of Arrowhead common stock for approximately 1.1 million shares of Unidym Series C Preferred Stock and 833,333 shares of Unidym Series C-1 Preferred Stock effective June 25, 2009;
The investment by Arrowhead of approximately $875,000 of cash and the conversion of $950,000 of intercompany loans into Unidym Series C-1 Preferred Stock on May 12, 2009 and June 25, 2009; and
The issuance and exchange of approximately 1.3 million shares of Arrowhead common stock to several Unidym stockholders for an equal number of Unidym Series A Preferred Stock completed June 11, 2009.
Pursuant to the agreements, the Arrowhead stock issued in the exchanges may not be sold for one year from the date of each agreement. [SM]
You May Also Be Interested In
- UPDATE: InterMune (ITMN) to Divest ActImmune for $55M in Cash, Plus Two-Year Royalty Stream
- SeaChange (SEAC) Sells On Demand Group to Avail-TVN in $27M Deal
- DaVita (DVA) to Acquire HealthCare Partners in $4.42B Cash and Stock Deal
Create E-mail Alert Related Categories
Mergers and AcquisitionsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
