ARCA biopharma (ABIO) Enters 1.75M Unit Private Placement; Sees $1.5M in New Proceeds

ARCA biopharma, Inc. (Nasdaq: ABIO), has agreed to sell approximately $1.75 million of its common stock and warrants to six institutional investors in a private placement transaction. ARCA will issue an aggregate of approximately 1.67 million shares of common stock to investors together with warrants to purchase approximately 1.25 million shares of common stock. ARCA expects to receive approximately $1.5 million in net proceeds from the transaction.

Each unit, consisting of one share of common stock and a warrant to purchase 0.75 share of common stock, will be sold at a purchase price of $1.05, which is a 22% discount to the consolidated closing bid price of $1.35 for the common stock as reported on the Nasdaq Capital Market on December 21, 2011. The warrants will be exercisable beginning six months after the closing of this transaction, expire 5 years after becoming exercisable and will have an exercise price of $1.485 per share. The closing of the transaction, which is subject to customary closing conditions, is scheduled to occur later today.

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