Colorado small businesses are less likely to change health insurers for the upcoming year, even as they anticipate continued price increases, according to the second-annual Delta Dental of Colorado Small Business Survey.
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Broomfield-based Arca (Nasdaq: ABIO) said if it does not raise enough money, it may close by Oct. 1, according to the SEC document. The new stock offering is scheduled to close on Tuesday, June 4. The company expects $18 million in net proceeds from the stock offering after expenses. Dawson James Securities Inc. is the agent for the offering.
The money will be used to fund a “2b” clinical study of its drug candidate Gencaro on atrial fibrillation patients. Atrial fibrillation is the formal name for irregular heartbeat. Drugs cannot be sold to consumers in the United States until three rounds of successful clinical trials on humans have been approved by the Food and Drug Administration. The clinical trial process often takes 10 years or more to complete.
Arca plans to issue about 125,000 shares of Series A convertible preferred stock together with warrants to purchase about 6.25 million shares of common stock, according to the SEC document. Each share of preferred stock and its related warrants will be sold at a purchase price of $160, with each share of Series A preferred stock convertible to 100 shares of common stock, according to the SEC document.
Each investor will receive a warrant to purchase 50 shares of common stock for each share of preferred stock.
Arca has an agreement to use a heart monitor made by medical device company Medtronic Inc. (NYSE: MDT) to conduct the trial.
Arca lost $4.3 million in 2012, following a loss of $5.4 million in 2011, according to the company’s annual reports. It has been in danger of being delisted from the Nasdaq stock exchange several times because its stock price has fallen below $1 per share.