Cambridge Heart closes $1.4 million warrant call

June 7, 2010 by MassDevice staff

Cambridge Heart Inc.'s call for $962,000 worth of warrants it issued last year as part of a Series D financing round also brought in $457,000 worth of unrelated, short-term warrants.

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Cambridge Heart Inc. (OTC:CAMH) closed its call for nearly $1 million worth of long-term warrants it issued last year as part of a Series D funding round with an unexpected bonus: Investors holding unrelated short-term warrants exercised $457,000 worth, taking the total gross proceeds to more than $1.4 million.

The Tewksbury, Mass.-based heart test maker said it would net $754,000 if all holders of the Series D warrants for 6,775,611 shares exercised them at their 14.2 cent share price. Cambridge Heart already pulled in $208,000 from the exercise of some of the warrants.

Cambridge Heart said all of the Series D warrant holders exercised them, bringing in $962,000 and prompting the issuance of about 6.8 million shares of common stock. The short-term warrant call caused the issuance of roughly 4.3 million shares.

The May 5 call was triggered after the company's stock closed higher than 28.4 cents for 20 consecutive trading days. CAMH stock was at 38 cents in mid-morning trading May 6. Cambridge Heart said it will re-purchase any unexercised warrants after 6:30 p.m. June 4.

The Series D round also included short-term warrants for about 11.3 million shares, at 10.7 cents per share. If all of those warrants were exercised the company would land another $1.2 million, but the company is not calling those warrants yet. To date their exercise resulted in about $261,000 from a pair of investors in the Series D round, according to a press release. As of June 7 Cambridge Heart said it had a total of 102.7 million shares of common stock outstanding and options and warrants for the purchase of 17 million more shares, for a fully diluted share count of 119.7 million shares.