Cardium Therapeutics Inc. (CRXM) reported that it has changed its corporate name and business to Taxus Cardium Pharmaceuticals Group Inc. in connection with its strategic collaboration and funding arrangement concluded with China-based Shanxi Taxus Pharmaceuticals Co. Ltd.
The strategic collaboration is designed to support the commercial development of Generx and Excellagen by Taxus Cardium, and also to provide new opportunities to explore the commercialization of these products for the emerging and rapidly growing advanced health care market in the People's Republic of China, and Shanxi Taxus oncology-focused product opportunities for the U.S. market.
The deal includes funding in the form of direct investments in Taxus Cardium of up to $5 million to support the commercialization of the company's products. Stock acquired by Shanxi Taxus in connection with the strategic alliance will be purchased at a premium above the then-prevailing average market price of Taxus Cardium common stock.
The company obtained an initial tranche of funding pursuant to the agreement by selling approximately 714,000 shares of common stock at $0.70 per share. Future tranches of up to $4.5 million would be sold at a 10 percent premium to the then-prevailing market price, based on a 30-day trailing average. The stock acquired is unregistered common stock and no warrants will be issued.