April 10, 2018

RXi Pharmaceuticals lands $4.9M investment

Photo | Brad Kane
Geert Cauwenbergh, president and CEO, RXi Pharmaceuticals Corp., Marlborough.

Marlborough startup drugmaker RXi Pharmaceuticals has agreed to terms with several entities for a $4.9 million investment intended to help fund preclinical and clinical work of the company's cancer treating drugs.

The registered direct offering, announced late Monday, includes the purchase of 1.5 million shares valued at just $3.24 per share, equaling gross proceeds of $4.9 million. After expenses related to the transaction, the company is expected to net about $4.1 million.

As part of the deal, the investors are given warrants to purchase up to an additional more than 1.1 million shares at a price of $3.15 per share.

The company did not immediately disclose the institutions or "accredited investors."

The announcement of the deal comes about two weeks after Nasdaq notified the company that it was not in compliance with the stock market's minimum stockholders' equity of $2.5 million.

The notification letter from Nasdaq late last month gave the company 45 days to submit a plan to regain compliance.

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