THE WOODLANDS, Texas - Lexicon Pharmaceuticals , Inc. (NASDAQ:LXRX) announced today it has entered into a securities purchase agreement for a private investment in public equity (PIPE) deal, expected to generate $250 million in gross proceeds. The agreement involves the sale of approximately 2.3 million shares of Series A Convertible Preferred Stock at $108.50 per share, slated to convert into around 115.2 million shares of common stock, pending stockholder approval.
This private placement, anticipated to close on March 13, 2024, subject to customary conditions, drew participation from both new and existing investors. Notably, an affiliate of Invus, L.P., Lexicon's largest stockholder, exercised its preemptive right to maintain its ownership percentage. Other participants included Braidwell LP, Great Point Partners, LLC, OrbiMed, and a prominent investment management firm.
Lexicon plans to allocate the net proceeds from this offering, along with its current assets, to advance research, development, and commercialization of its drug programs, as well as for working capital and other corporate purposes.
The securities in this PIPE transaction have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on their sale in the U.S. Lexicon has agreed to file a registration statement with the SEC for the resale of the common stock issuable upon conversion of the preferred stock.
This financial maneuver comes as part of Lexicon's broader strategy to fund its operations and drug development pipeline. The company has a history of exploring the function of thousands of genes, identifying over 100 protein targets with therapeutic potential across various diseases.
The information in this article is based on a press release statement from Lexicon Pharmaceuticals, Inc.
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