San Diego Business Journal

Mast Therapeutics Inc., a clinical stage biopharmaceutical company, announced the closing of its underwritten public offering of $21 million in equity securities.

Mast intends to use the net proceeds primarily to fund its clinical development programs, including EPIC, the company's ongoing Phase 3 study of MST-188 in sickle cell disease, and for working capital and general corporate purposes.

The company sold 30,941,102 Series A units at a purchase price per unit of $0.48. Each Series A unit consisted of one share of common stock and one-half (0.5) of a warrant. Each whole warrant is exercisable for one share of common stock at an initial exercise price of $0.75 per share.

The company also sold 13,081,428 Series B units at a purchase price per unit of $0.47. Series B units were offered only to those purchasers whose purchase of additional Series A units in the offering would otherwise have resulted in the purchaser beneficially owning more than 4.99 percent of the company's outstanding common stock following the completion of the offering. Each Series B unit consisted of one pre-funded warrant to purchase one share of common stock at an initial exercise price of $0.01 per share and one-half (0.5) of a warrant. Each whole warrant is exercisable for one share of common stock at an initial exercise price of $0.75 per share.

The company estimates net proceeds from the offering will be approximately $20 million, after deducting underwriting discounts and commissions and estimated offering expenses.

Cowen and Company LLC acted as sole book-running manager. Canaccord Genuity Inc. acted as lead manager and Laidlaw & Company (UK) Ltd. and Merriman Capital Inc. acted as co-managers for the offering.

Mast (NYSE MKT: MSTX) is a publicly traded company headquartered in San Diego. The company is leveraging the Molecular Adhesion and Sealant Technology platform, made from over two decades of clinical, nonclinical and manufacturing experience with purified and non-purified poloxamers, to develop MST-188, its lead product candidate, for serious or life-threatening diseases and conditions typically characterized by impaired microvascular blood flow and damaged cell membranes.