One and a half minutes after updating its tozadenant Phase 3 program design with a positively versed stock exchange release, biopharmaceutical company Biotie Therapies (OMXH: BTH1V) announced it plans to list in the United States and triple its stock count in the process to fund the said development program.
The company will issue convertible notes with a conversion price of 0.15 EUR per share and warrants
at a subscription price of EUR 0.17 in a directed issue to U.S. based investors such as Vivo Capital, OrbiMed, Versant Ventures and investment funds managed by the Baupost Group and some existing shareholders. Up to 562 million new shares may result from this. It also plans to conduct an Initial Public Offering in the United States with a maximum number of 530 million new shares from that as well. This might mean the company having more than 1.5 billion shares.
Many traders jumped the gun on the first stock exchange release. Share price of Biotie certainly reflected the need for further financing, and the conversion prices aren’t a whole lot below the current market price, so whether they come out of this unscathed is another matter, but it would certainly be hoof companies to ask for a trading halt rather than to drop one mammoth nugget at a time during market open.
