Cerecor, Inc. (NASDAQ: CERC) and Aspire Capital Fund, LLC (“Aspire”) have entered into common stock purchase and registration rights agreements worth $15 million. Cerecor is a clinical-stage biopharmaceutical company specializing in developing drugs that can help people with neurological and psychiatric disorders. Aspire is an institutional investor organization based in Chicago.
The agreement covers Aspire’s purchase of $1 million worth of Cerecor common stocks at a rate of $4 per share. This initial purchase is a 4% premium over the September 8 closing stock price of $3.86. The remaining $14 million will be paid by Aspire if Cerecor decides to sell the remaining shares. If and when Cerecor decides to sell shares to Aspire, this can only be done once the registration has been filed and the U.S Securities and Exchange Commission has deemed it effective. Cerecor has agreed to file the registration.
The remaining $14 million worth of shares will be sold to Aspire over a period of two and a half years. Cerecor will be in charge of when and for how much these sales will be made. The prices of any sales made in the future will be calculated according to market prices during each sale. The money raised from this agreement will be used to move forward in research and development, as well as for working capital and business development.
In a recent news release, Dr. Uli Hacksell, president and CEO of Cerecor, stated, “The Agreement with Aspire facilitates the continued advancement of our portfolio of novel product candidates. This funding agreement also provides Cerecor with additional financial flexibility heading into 2017.”
Steven G. Martin, managing member of Aspire Capital said that the company is happy to be entering into the agreement with Cerecor, as it has an experienced management team and a favorable neurological and psychiatric drug pipeline. He commented, “We are looking forward to Phase 2 clinical data for CERC-301 and CERC-501 in the relatively near future. We believe this Agreement will help provide the Company with a flexible and efficient source of capital to advance these very exciting development programs.”
For more information, visit www.Cerecor.com
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