RXi Secures $25M Equity Arrangement
Worcester-based RXi Pharmaceuticals Corp. has entered into an agreement by which it may sell up to $25 million in common shares in $500,000 chunks to YA Global Investments.
YA is a fund managed by Yorkville Advisors of New Jersey.
Under the agreement, RXi may sell, and Yorkville is obligated to buy, up to $500,000 in RXi shares at any given time during the two year term of the deal. Yorkville is not permitted to short sell or enter into any hedging transactions related to RXi stock and there are no warrants or other derivative arrangements included in the agreement.
During the term of the agreement, RXi is free to raise funds from other sources. The company has issued 58,398 shares with a total worth of $250,000 to Yorkville as a one-time commitment fee and has paid $25,000 in legal fees associated with the arrangement.
RXi said it does not plan to immediately use the Yorkville arrangement to raise cash, but sought the agreement as a way to ensure access to capital for the next two years.
RXi is developing drugs based on RNAi. RNAi, which was pioneered by RXi co-founder, UMass Medical School professor and Nobel Prize winner Craig Mello, intends to treat diseases by interfering with the genes suspected of causing those diseases.
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