Interleukin Genetics snags $10 mln
Interleukin Genetics has closed a $5 million private placement. The investors included New Enterprise Associates and Bay City Capital. According to terms of the agreement, Interleukin has agreed to sell over 50 million shares of its common stock at $0.1003 per share. BTIG was the placement agent for the transaction. Also, Horizon Technology Finance Corp. has agreed to provide a $5 million loan to Interleukin. Headquartered in Waltham, Mass., Interleukin Genetics is a maker of proprietary genetic tests for chronic diseases and health related conditions.
WALTHAM, Mass.–(BUSINESS WIRE)–Interleukin Genetics, Inc. (OTCQB: ILIU) announced today that it has entered into a Securities Purchase Agreement with various accredited investors to raise gross proceeds of $5.0 million in a private placement financing. The syndicate is comprised of new and existing investors including two leading life sciences investment firms, New Enterprise Associates (NEA) and Bay City Capital.
Pursuant to the purchase agreement, the Company has agreed to issue an aggregate of 50,099,700 shares of the Company’s common stock at a price per share of $0.1003, as well as warrants to purchase up to an aggregate of 50,099,700 shares of common stock. The warrants have a term of seven years and an exercise price of $0.1003 per share. BTIG, LLC served as the placement agent for the private placement.
Separately, Interleukin also entered into a venture loan and security agreement with Horizon Technology Finance Corporation (NASDAQ: HRZN) under which the Company has borrowed $5.0 million. In connection with the loan agreement, the Company has issued to Horizon warrants to purchase a total of 2,492,523 shares of common stock at a per share exercise price of $0.1003. The lender warrants have a term of 10 years. The Company has agreed to repay the loan in 45 monthly payments, including an initial 15-month period of interest-only payments.