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Marina Biotech Announces Purchase Agreement with Lincoln Park Capital
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Marina Biotech, Inc., has announced that it has entered into a purchase agreement with Lincoln Park Capital Fund, LLC, whereby LPC has committed to invest, at the Company's sole option, up to $15 million of equity capital.
"LPC has participated in the past as an institutional investor in Marina and we look forward to working with them as a financial partner," said J. Michael French, President and Chief Executive Officer at Marina Biotech, Inc.
French continued, "This commitment by LPC provides additional financial flexibility as we continue our research and development efforts."
During the 30-month term of the purchase agreement the Company controls the timing and amount of any future investment, if and when the Company decides in accordance with the purchase agreement.
LPC has no right to require the Company to sell any shares to LPC but LPC is obligated to make purchases as Marina directs, subject to certain conditions, which include the effectiveness of a registration statement with the U.S.
Securities and Exchange Commission covering the sale of the shares that may be issued to LPC.
There are no upper limits to the price LPC may pay to purchase the Company's common stock and the purchase price of the shares related to any future investments will be based on the prevailing market prices of the Company's shares immediately preceding the notice of sale to LPC without any fixed discount.
There are no penalties or liquidated damages in the purchase agreement. The agreement may be terminated by the Company at any time, at its sole discretion, without any cost or penalty.
The proceeds from this investment will be used to advance both the Company's FAP clinical program and broad nucleic acid-based drug discovery platform as well as other general Corporate purposes.
A more detailed description of the agreement is set forth in the Company's Current Report on Form 8-K filed with the SEC on October 17, 2011 which the Company encourages be reviewed carefully.
