Ligand deal

In return for exclusive worldwide marketing rights to the products, AHP will fund up to $19 million of LGDNA's research and pay $5 million for 431,965 LGNDA Class A common shares at $11.58 per share. LGNDA has 7.3 million Class A shares prior to the investment. AHP also will lend the biotech company up to $20 million over the life of the agreement at a fixed rate of interest equal to the prime rate.

Under the three-year agreement, AHP will provide the $5 million in equity plus the first $10 million of the loan upon execution of the contract. The second $5 million increment of the loan will be paid after LGNDA has achieved certain milestones. The remaining $5 million is contingent upon extension of the collaboration to five years. The loan is convertible into LGNDA stock at $13.31 per share for the first two installments and at $14.47 per share for the third year investment. ...