12. Warrants

Prior to the Merger, Zalicus issued warrants to purchase common stock to certain third parties. Zalicus issued warrants to purchase 148 shares of common stock to General Electric Capital Corporation with an exercise price of $405.00 per share that expired on June 28, 2015 and warrants to purchase 1,079, 1,887 and 3,737 shares of common stock to Oxford at exercise prices of $83.40, $135.00 and $68.40 per share, respectively. The Oxford warrants expire on December 22, 2017.

In March 2014, the Company issued warrants, in connection with a convertible notes issuance, to purchase 1,000,000 shares of Series A Preferred with an exercise price of $0.01 per share (Note 11). Upon the Series B Preferred financing described in Notes 11 and 14, these warrants became exercisable into 787,402 shares of Series B Preferred at an exercise price of $0.01 per share. The aggregate fair value of such warrants at their issuance date was $1,171. Each warrant was immediately exercisable and expires approximately seven years from the original date of issuance. Each warrant was exercisable on either a physical settlement or net share settlement basis.

In April 2014, warrants to purchase 5,101,816 shares Series A Preferred were exercised into 5,101,816 shares of Series A Preferred. In April 2014, the warrants to purchase Series B Preferred were exercised into 787,402 shares of Series B Preferred.

In connection with the Merger on July 15, 2014, all of the Company’s outstanding warrants exercisable for shares of preferred stock were exchanged for warrants exercisable for shares of Public Epirus Common Stock, which resulted in the reclassification of the liability-classified warrants to additional paid-in capital.

As described in Note 11, the Company entered into a Loan Agreement with Hercules under which the Company was given access to up to $15,000 of term loans. As consideration for the Loan Agreement, on September 30, 2014, the Company issued Hercules warrant to purchase 64,194 shares of its common stock at an exercise price of $7.01 per share, which expires five years from issuance. The Warrant’s fair value of $248 at September 30, 2014 was determined using a Black‑Scholes option‑pricing model with the following assumptions: expected volatility of 61.68%; contractual term of five years; and risk‑free interest rate of 1.78%.

As of December 31, 2015 and 2014, all of the Company’s outstanding warrants were classified in equity. The following warrants to purchase common stock were outstanding:


	As of December 31, 2015

	Number of Shares
	Underlying Warrants	Exercise Price Per Share
Common Stock	1,379	$	0.08
Common Stock	64,194	$	7.01
Common Stock	20,616	$	7.55
Common Stock	3,737	$	68.40
Common Stock	1,079	$	83.40
Common Stock	1,887	$	135.00


	As of December 31, 2014

	Number of Shares
	Underlying Warrants	Exercise Price Per Share
Common Stock	1,379	$	0.08
Common Stock	64,194	$	7.01
Common Stock	20,616	$	7.55
Common Stock	3,737	$	68.40
Common Stock	1,079	$	83.40
Common Stock	1,887	$	135.00
Common Stock	148	$	405.00