Biolase Technology has entered into an agreement with Deerfield Management, an institutional life science investor, and other institutional investors to purchase approximately $9 million of Biolase unregistered securities in a private placement transaction. The proceeds will be used for working capital and general corporate purposes.
Under the terms of the private placement, Biolase has agreed to sell an aggregate of approximately 1.6 million shares of its common stock at price of $5.55 per share. In addition, the institutional investors will receive an aggregate number of warrants to purchase up to approximately 800,000 shares of common stock, at an exercise price of $6.50 per share, which warrants shall be nonexercisable for six months and shall have a term of five years from the date of issuance.
The private placement is expected to close on or about June 29, 2011, subject to customary closing conditions.
