Horizon Pharma Announces $50.8 Million Private Placement
DEERFIELD, Illinois — Horizon Pharma, Inc. (NASDAQ: HZNP) announced today the execution of a securities purchase agreement with a select group of institutional and accredited investors providing for a private placement financing. Upon the closing of the private financing, Horizon will receive gross proceeds of approximately $50.8 million resulting from the sale of 14,033,829 units at a price of $3.62125 per unit. Each unit consists of one share of Horizon’s common stock and a warrant to purchase 0.25 shares of common stock at an exercise price of $4.308 per share. The financing is expected to close on March 2, 2012 subject to standard closing conditions. JMP Securities LLC, Cowen and Company, LLC and Stifel Nicolaus Weisel served as joint-lead placement agents for the financing.
Horizon expects that the net proceeds from this financing, combined with existing cash resources, will fund the company’s operations into the second half of 2013 and will be used for the ongoing commercial launch of DUEXIS® in the U.S., to pursue regulatory approval for LODOTRA® in the U.S. and DUEXIS in Europe and for working capital and other general corporate purposes.
The securities to be sold in this private financing have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Horizon has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued in this private financing.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of any such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Horizon Pharma
Horizon Pharma, Inc. is a biopharmaceutical company that is developing and commercializing innovative medicines to target unmet therapeutic needs in arthritis, pain and inflammatory diseases. For more information, please visit www.horizonpharma.com.
This press release contains forward-looking statements, including statements regarding Horizon’s receipt of proceeds upon the closing of the private financing, Horizon’s expected use of the net proceeds from the private financing, the length of time Horizon’s existing cash and net proceeds from the private financing will fund operations, the expected closing date of the private financing, and the anticipated filing of a registration statement to cover the resale of the shares of common stock expected to be issued in the private financing. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release, and actual results may differ materially from those in these forward-looking statements as a result of various factors. These factors include, but are not limited to, risks regarding Horizon’s ability to meet the closing conditions associated with the private financing and complete the closing on its anticipated timeline, Horizon’s ability to commercialize DUEXIS in the U.S. and pursue additional regulatory approvals for DUEXIS and LODOTRA, unexpected future requirements for cash resources, the possibility of early maturity of Horizon’s recently completed loan facility or requirements to prepay all or part of the outstanding balance of the loan facility and Horizon’s ability to comply with the covenants and obligations under the loan facility and related agreements. For a further description of these and other risks facing the Company, please see the risk factors described in the Company’s filings with the United States Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in those filings. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise these statements, except as may be required by law.
Robert J. De Vaere
Executive Vice President and Chief Financial Officer
Burns McClellan, Inc.