Corporate News Blog – Viking Enters into Purchase Agreements worth $16.25 Million with Lincoln Park Capital

LONDON, UK / ACCESSWIRE / October 2, 2017 / Pro-Trader Daily looks at the latest corporate events and news making the headlines for Viking Therapeutics, Inc. (NASDAQ: VKTX) (“Viking”), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=VKTX. The clinical-stage biopharmaceutical Company, which works towards the development of novel therapies for metabolic and endocrine disorders, announced on September 29, 2017, that it entered into a $15.0 million common stock purchase agreement with Lincoln Park Capital Fund, LLC (“LPC”). LPC is a Chicago-based institutional investor that manages a portfolio of investments in public and private entities. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Terms of the Common Stock Purchase Agreement

As per the common stock purchase agreement, Viking will retain the right and sole discretion to sell up to $15.0 million in common stock to LPC over a 30-month period. This month-long period would be contingent and would start on the efficacy of the resale registration statement as well as the satisfaction of other conditions covered in the agreement.

As mentioned above, Viking gets the right to control the time as well as amount of any future sale of common stock to LPC. However, LPC has no right to demand any sales from Viking although it is obligated to make purchases as per Viking’s direction, as dictated by the agreement.

Moreover, no upper limit has been fixed for the price LPC may pay to purchase common stock from Viking. The purchase price would be based on the prevalent market price of Viking’s shares at the time of each sale to LPC.

At the same time, LPC has committed that it would not indulge in any direct or indirect short selling or hedging of Viking’s shares of common stock.

The agreement includes no limitations on the use of proceeds. In fact, there are no rights of first refusal, participation rights, penalties, or liquidated damages in the purchase agreement.

As a consideration for entering into the purchase agreement, Viking has also offered a commitment fee to Lincoln Park in the form of issued shares of common stock.

Besides, Viking preserves the right to terminate the common stock purchase agreement at any time, at its discretion, without any additional cost or penalty.

An account of the common stock purchase agreement with related registration rights agreement is set forth in Viking’s Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on September 29, 2017.

Additional Purchase Agreement

Furthermore, Viking also entered into a separate purchase agreement with LPC wherein LPC agreed to purchase $1.25 million of Viking’s registered common stock at the value of $1.78 per share. This rate signifies approximately 14% premium on the closing market price of the stock, as on September 27, 2017.

Proceeds to be Used for General Corporate Purposes

Viking intends to use the sales proceeds towards general corporate purposes such as advancing the Company’s drug development pipeline.

Agreement to Provide Greater Flexibility to Vikings

Brian Lian, Ph.D., Chief Executive Officer at Viking proclaimed that this purchase agreement would enhance Viking’s access to capital at attractive terms in the future. It would also make the Company more flexible, enable it to pursue the most advantageous path forward with its Phase-2 programs for hip fracture and fatty liver disease as well as its earlier-stage programs. He shared that the Company would continue to envisage top-line results from its Phase-2 trial of VK5211 in hip fracture in the fourth quarter of 2017.

LPC’s Wide Portfolio

Lincoln Park Capital Fund invests in a wide range of Companies and industries with an emphasis on life sciences, specialty financing, cleantech, energy, real estate and technology. Also, its investments vary from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility, and consistency.

Financial Advisor

For these purchase agreements, Maxim Group LLC is serving as a financial advisor to Viking.

Last Close Stock Review

Viking Therapeutics’ share price finished last Friday’s trading session at $1.91, advancing 6.11%. A total volume of 1.73 million shares have exchanged hands, which was higher than the 3-month average volume of 236.44 thousand shares. The Company’s stock price skyrocketed 76.85% in the last three months, 30.82% in the past six months, and 40.44% in the previous twelve months. Additionally, the stock soared 60.50% since the start of the year. The stock currently has a market cap of $49.91 million.

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