Kevin Kotler’s Broadfin Capital, in its latest filing with the Securities and Exchange Commission, has reported ownership of 9.09 million shares of MELA Sciences Inc (NASDAQ:MELA). The stake is equivalent to 16.09% of the company’s common stock, according to the filing.
The position is held in the form of 4,000 shares of series A preferred stock, which may be converted to around 4.8 million shares of common stock of MELA Sciences Inc (NASDAQ:MELA) and a warrant, which may be exercised in exchange for over 4.3 million shares. The securities have been bought under the terms of a purchase agreement signed at the end of January.
Last month, MELA Sciences Inc (NASDAQ:MELA) conducted $12.5 million private placement of convertible preferred stock common stock warrants and common stock. MELA issued non-redeemable preferred stock, convertible at any time into common stock at a conversion price of $0.84 amounting to 14,642,857 shares of the company’s common stock. Also, the company issued to the investors warrants to purchase up to 13,297,297 shares of common stock at an exercise price of $0.74.
MELA, a medical device company developing dermatology diagnostics, has a market cap of $30.6 million. As of the end of the year, Hal Mintz’s Sabby Capital owned 4.29 million shares of the company. Another stockholder Ken Griffin’s Citadel Investment Group holds 18,359 shares of the company.
New York City-based Broadfin Capital, at the end of the fourth quarter of 2014, reported an equity portfolio value was $758 million. The fund held its largest position in Depomed Inc (NASDAQ:DEPO) with 4.74 million shares, worth $50.2 million, and Lannett Company Inc. (NYSE:LCI), in which the fund revealed a $44.4 million stake, containing 1.34 million shares.
Last month, Broadfin Capital reported initiating a 5.55% position in Eleven Biotherapeutics Inc. (NASDAQ:EBIO), equal to 896,100 shares. In January, Broadfin Capital also revealed a new stake in Retrophin Inc (NASDAQ:RTRX), which amasses 6.93% of the company’s common stock.