113 MILLION shares @ 14.5 cents each ( HUGE DILUTION )
RXi snags OPKO's RNAi portfolio in penny stock swap
March 7, 2013 | By John Carroll
RXi Pharmaceuticals ($RXII) has parlayed a chunk of its penny OTC stock for a portfolio of RNAi therapies at OPKO Health. In the deal RXi agreed to hand over 50 million shares--worth about $10 million--to RXi along with a commitment of up to $50 million more in milestones.
In its release, RXi said it was laying claim to a broad portfolio of RNAi patents covering new therapies for the eye, cancer, immune disorders, and inflammatory diseases. And it added that the company is raising $16.4 million through a private placement of 113 million shares for 14.5 cents each.
Why would anyone pay more than 14.5 cents a share? Especially in view of the 50 MILLION additional shares that got issued to OPKO?