Local Community Development Corporations

Tuesday, March 1, 2011

Tengion Attracts Crucial $31.4M Investment

Tengion lands $31.4M investment

Date: Tuesday, March 1, 2011, 10:33am EST

The Pennsylvania-based company is working to commercialize the research of Wake Forest University's Institute for Regenerative Medicine into human organ replacement. It has about 45 employees in Winston-Salem and has been warning that it needed to raise more money to continue operations beyond this spring.

Under the deal announced Tuesday, Tengion will receive investment proceeds of $31.4 million in exchange for 11.1 million shares of common stock, and warrants to purchase another 10.5 million shares during the next five years at a set price of $2.88 per share.

Also, Medtronic Inc., which is one of the investors in the deal, receives a right-of-first-refusal on the Neo-Kidney Augment, the lead product candidate in Tengion's portfolio.

The transaction is scheduled to close by March 4.



Read more: Tengion lands $31.4M investment The Business Journal

No comments:

Post a Comment