Arrowhead increases ownership in Calando Pharmaceuticals through Series A Preferred Stock exchange

Sep 23 2010

Arrowhead Research 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”

"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.