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Verenium obtains debt financing

San Diego-based Verenium Corp. inked a $22.5 million secured debt financing with the Athyrium Opportunities Fund.

The industrial biotech (Nasdaq: VRNM), focused on the development and commercialization of high-performance enzymes, said the capital will be used to continue to advance its product pipeline to commercialization, enhance its manufacturing capabilities and fund general working capital purposes.

Net proceeds after estimated expenses will be approximately $21.3 million.

The debt bears interest at 11.5 percent per annum, with interest payments due quarterly over a five-year term and the principal balance due as a lump-sum payment at maturity in December 2017.

In connection with the financing, Verenium issued warrants to Athyrium to purchase approximately 2.9 million shares of common stock at an exercise price of $2.49 per share, representing a 17.5-percent premium over the closing price on the date of the debt agreement.

The warrants have a seven-year term and are immediately exercisable.

"We anticipate that this financing will allow us to invest in our business and fund our growth initiatives through to operating profitability with minimal dilution to existing shareholders," said Jeffrey Black, senior vice president and chief financial officer at Verenium.

Verenium's tailored enzymes are environmentally friendly, making products and processes greener and more cost-effective for industries, including the global food and fuel markets.

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Verenium Corp.

Company Website

3550 John Hopkins Ct.
San Diego, CA 92121

Verenium Corp. Executive(s):

James Levine

  • Chief Executive Officer, President

Janet Roemer

  • Chief Operating Officer

Jeffrey Black

  • Chief Financial Officer