Stockholders' Equity

12 Months Ended

Sep. 30, 2016

Equity [Abstract]

Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

At September 30, 2016, the Company had a total of 150,000,000 shares of capital stock authorized for issuance, consisting of 145,000,000 shares of Common Stock, par value $0.001 per share, and 5,000,000 shares of Preferred Stock, par value $0.001 per share.

At September 30, 2016, 69,746,685 shares of Common Stock were outstanding.  Additionally, 15,652 shares of Series C Preferred Stock were outstanding, which are convertible into 2,670,990 shares of Common Stock. At September 30, 2016, 8,696,623 shares of Common Stock were reserved for issuance upon exercise of options and vesting of restricted stock units granted or available for grant under Arrowhead’s 2004 Equity Incentive Plan and 2013 Incentive Plan, as well as for inducement grants made to new employees.

The Preferred Stock is convertible to Common Stock by its holder at its stated conversion price, though it is not convertible to the extent the holder would beneficially own more than 9.99% of the number of shares of outstanding Common Stock immediately after the conversion.  The holders of Preferred Stock are eligible to vote with the Common Stock of the Company on an as-converted basis, but only to the extent they are eligible for conversion without exceeding the 9.99% ownership limitation. The Preferred Stock does not carry a coupon, but it is entitled to receive dividends on a pari passu basis with Common Stock, when and if declared.  In any liquidation or dissolution of the Company, the holders of Preferred Stock are entitled to participate in the distribution of the assets, to the extent legally available for distribution, on a pari passu basis with the Common Stock.

On March 3, 2015, the Company issued 3,321,383 shares of Common Stock as part of the Company’s entry into an Asset Purchase and Exclusive License Agreement (the “RNAi Purchase Agreement”) with Novartis Institutes for BioMedical Research, Inc., a Delaware corporation (“Novartis”), pursuant to which the Company acquired Novartis’ RNAi assets and rights thereunder.

On August 8, 2016 the Company sold 7,627,119 shares of Common Stock to certain institutional investors at a price of $5.90 per share.  The aggregate purchase price paid by the investors for the Common Stock was $45.0 million, and the Company received net proceeds of approximately $43.2 million, after advisory fees and offering expenses.

On September 28, 2016 the Company sold 1,256,983 shares of Common Stock to Amgen, Inc. at a price of $7.16 per share as part of the Common Stock Purchase Agreement executed with Amgen and discussed further in Note 2 – Collaboration and License Agreements – Amgen, Inc.  The Company received proceeds of $9 million.  On November 18, 2016, a second tranche of 1,745,810 shares were also sold to Amgen at a price of $7.16 per share as part of the Common Stock Purchase Agreement.  The Company received proceeds of $12.5 million in November 2016.

The following table summarizes information about warrants outstanding at September 30, 2016:

Exercise prices		Number of  Warrants		RemainingLife in Years
$	70.60		94,897		0.6
$	4.16		1,000		0.2
$	2.12		75,000		1.4
$	1.83		277,284		1.2
$	7.14		80,000		1.7
Total warrants outstanding			528,181