ACADIA Pharmaceuticals Inc. announced before the opening bell that it has agreed to a private placement financing with a select group of institutional investors, including New Enterprise Associates and Venrock. As terms of the agreement, ACADIA will receive gross proceeds of $15.0 million from the sale of approximately 12.57 million units at a price of $1.19375 per unit. Each unit consists of one share of ACADIA’s common stock and a warrant to purchase 0.35 shares of common stock.
Anticipated to close before the end of this week, the private placement is still subject to the satisfaction of customary closing conditions. The financing will provide ACADIA with additional resources to advance its Phase III pimavanserin program, including the ongoing Phase III trials in Parkinson’s disease psychosis. Furthermore, the added funds are expected to extend the company’s cash runway into 2013.
With a solid balance sheet, a significant position held by insiders and an average analyst price target of $3.25, the company is worthy of a closer look.