Peregrine Pharmaceuticals to Sell 9.3 Million Shares to Double U Master Fund for $13 Million

TUSTIN, Calif. -- Biopharmaceutical company Peregrine Pharmaceuticals Inc. said Monday it signed a deal to sell about 9.3 million shares of common stock to institutional investor the Double U Master Fund LP for $13 million.

As part of the agreement, Peregrine has agreed it will not offer or sell its common stock in any private placements priced below $2.50 per share for the rest of the year.

The shares are being sold under a shelf registration statement effective April 12. There were no warrants issued or commissions paid in conjunction with the transaction.

Net proceeds will be used to advance lead clinical programs, including a Phase Ib repeat dose study of bavituximab for the treatment of hepatitis C virus infection; a Phase I study of bavituximab for the treatment of solid tumor cancer and a Phase II/III study of Cotara for the treatment of brain cancer.

Peregrine will also use part of the proceeds to speed the clinical progress of these lead drug candidates by adding additional clinical programs in the U.S. or abroad. Proceeds will also be given to further fund preclinical programs that are assessing the potential utility of bavituximab for the treatment of influenza, HIV, cytomegalovirus and other lethal viruses.

Peregrine shares fell 1 cent to $1.64 in afternoon trading on the Nasdaq. The stock has traded in a 52-week range of 88 cents to $1.99.