Corporation (NASDAQ:ARWR) (“the Company”) today announced that
it has increased its ownership of majority owned subsidiary Calando Pharmaceuticals
through the exchange of Calando Series A Preferred Stock for Arrowhead warrants.
This exchange follows recent milestones achieved by Calando, including several
notable first accomplishments in RNAi technology. These include proof of the
first definitive systemic siRNA delivery and first to show RNAi mediated knockdown
of target mRNA and protein in humans.
.“We see significant value in Calando and, therefore, are interested
in maximizing our ownership position in the company,” said Christopher
Anzalone, Arrowhead’s CEO. “Acquisition of this majority block of
Calando Series A stock is a good transaction for us because it increases our
ownership in Calando and enables us additional flexibility as we work to negotiate
the right partnership or series of partnerships for Calando’s industry
leading RNAi delivery platform and exciting therapeutic candidate, CALAA-01.
Calando is making continued progress toward completing the phase 1 clinical
trial of CALAA-01 and interfacing with potential strategic partners.”
Pursuant to the exchange agreement between Arrowhead and the Calando Series
A holders, Arrowhead exchanged a warrant to purchase approximately 3.9 million
shares of Arrowhead stock for Calando Series A Preferred Stock with a liquidation
preference of approximately $3.9 million. The Calando preferred stock is convertible
into 2.7 million shares of Calando common stock at the discretion of the holder.
The warrants have an exercise price of $0.50 per share and are exercisable beginning
March 17, 2011, with an expiration date of September 16, 2015.
Arrowhead Research Corporation () (NASDAQ:ARWR) is a nanotechnology company
commercializing new technologies in the areas of life sciences, electronics,
and energy. Arrowhead is seeking to build value for shareholders through the
progress of majority owned subsidiaries. Currently, Arrowhead has four subsidiaries
commercializing nanotech products and applications and minority investments
in two privately held nanobiotech companies.