12.  Stockholders’ Equity

 

Preferred Stock

 

The Company has authorized 5.0 million shares of preferred stock, par value $0.01 per share. The Company’s certificate of incorporation provides that shares of preferred stock may be issued from time to time in one or more series. The Company’s Board of Directors is authorized to fix the voting rights, if any, designations, powers, preferences, qualifications, limitations and restrictions thereof, applicable to the shares of each series.

 

The Company has authorized Series A Junior Participating Cumulative Preferred Stock, par value $.01 per share. As of December 31, 2016 and 2015, there were no shares of Series A Junior Participating Cumulative Preferred Stock issued and outstanding.  See Note 13, Redeemable Preferred Stock, for description of the Company’s issued and outstanding Series C and D redeemable preferred stock.

 

Common Stock and Warrants

 

The Company has one class of common stock, par value $0.01 per share. Each share of the Company’s common stock is entitled to one vote on all matters submitted to stockholders. There were 191,141,646 and 180,087,491 shares of common stock outstanding as of December 31, 2016 and 2015, respectively.

 

In December 2016, the Company completed an offering of an aggregate of 10,400,000 shares of common stock, and warrants to purchase 3,120,000 shares of common stock.  The net proceeds to the Company were approximately $11.9 million, after deducting underwriting discounts and commissions and expenses payable by the Company. Each full warrant entitles the holder thereof to purchase one share of common stock at an exercise price equal to $1.50 per share. The warrants will be exercisable during the period commencing on the six-month anniversary of the date of original issuance and ending on June 21, 2022.  The Company also entered into an underwriting agreement with Oppenheimer & Co. Inc., related to the underwritten registered offering of the Company’s Series D Redeemable Preferred Stock, which included the issuance of warrants to purchase 7,381,500 shares of common stock, as discussed in Note 13, Redeemable Preferred Stock.

 

 During 2014, the Company completed a series of underwritten public offerings, aggregating to issuances of 36,502,440 shares of common stock.  The share prices ranged from $5.50 to $5.74 with respect to 26,502,440 of the shares. One of the underwritten public offerings included accompanying warrants to purchase 4,000,000 shares of common stock. The shares and the warrants were sold together in a fixed combination, with each combination consisting of one share of common stock and 0.40 of a warrant to purchase one share of common stock, at a price of $3.00 per fixed combination for 10,000,000 shares. The total net proceeds to the Company from the 2014 public offerings were $165.7 million, of which $11.8 million in value was ascribed to the warrants issued in the January 2014 public offering.   The warrants had an initial exercise price of $4.00 per share, were immediately exercisable and will expire on January 15, 2019.  Due to the anti-dilutive provision, the exercise price of the warrants decreased to $1.025 per share in December 2016. 

 

During 2013, the Company completed a series of underwritten public offerings. One of the underwritten public offerings included accompanying warrants to purchase common stock.  As of December 31, 2016 and 2015, 100 warrants with an exercise price of  $0.15 per share, remain outstanding, are exercisable and will expire in February 2018. 

 

During the years ended December 31, 2016, 2015 and 2014, 119,879,  26,882 and 23,918,429 warrants were exercised, respectively, resulting in the issuance of shares of common stock of 119,879,  26,882 and 23,832,038, respectively, and gross proceeds of $111 thousand, $25 thousand, $18.3 million, respectively, and increase of paid-in capital and reduction of the warrant liability by $141 thousand, $22 thousand and $83.4 million, respectively.  At December 31, 2016 and 2015, the Company has 14,501,600 and 4,192,567 warrants outstanding and exercisable.  The warrants are measured at fair value and classified as a liability on the consolidated balance sheets.