Martek Biosciences Corp. Announces $9.1 Million Sale of Common Stock and Warrants

Strategic Insights -

Martek Biosciences Corp. has made a significant financial move by selling 915,816 shares of its common stock and warrants to purchase 320,215 shares of its common stock to institutional investors. This transaction, valued at $9.1 million, will provide the company with additional resources to commercialize its innovative products, including DHA- and arachidonic acid-containing oils for infant formula supplementation and adult supplements. The sale of these securities is not registered under the Securities Act of 1933, and their offer and sale are subject to certain exemptions.

Key Takeaways:

  • Martek Biosciences Corp. sold 915,816 shares of its common stock and warrants to purchase 320,215 shares of its common stock to institutional investors.
  • The transaction was valued at $9.1 million, with the warrants exercisable for a period of three years at a price of $9.91 per share.
  • The net proceeds from the sale of these securities will be used to commercialize the company's products, including DHA- and arachidonic acid-containing oils.
  • The sale of these securities is not registered under the Securities Act of 1933, and their offer and sale are subject to certain exemptions.
  • Martek Biosciences Corp. is engaged in the research, development, and manufacturing of nutritional supplements, drug design tools, diagnostics, and pharmaceuticals from microalgae.
  • The company's strategy is to access the vast, but largely untapped microalgal kingdom to create a broad portfolio of high-value products that uniquely satisfy unmet nutritional and health needs.

Statistics:

  • 915,816 shares of common stock were sold.
  • 320,215 warrants to purchase shares of common stock were sold.
  • The aggregate consideration for the sale of these securities is $9.1 million.
  • The warrants have a three-year duration.
  • The exercise price of the warrants is $9.91 per share.
  • The sale of these securities is not registered under the Securities Act of 1933.

Sources:

  • "Martek Biosciences Corp. Announces the Sale of Common Stock and Warrants," Business Wire, May 22, 1995.