Filed
pursuant to Rule 424(b)(5)
Registration
No. 333-163987
PROSPECTUS
SUPPLEMENT
(To
Prospectus Dated January 5, 2010)
4,375,002 Units
Units
Consisting of
One
Share of Common Stock and
a
Warrant to Purchase 0.40 of a Share of Common Stock
We are
offering 4,375,002 units, with each unit consisting of one share of our
common stock and a warrant to purchase 0.40 of share of our common stock
(and the shares of common stock issuable from time to time upon exercise of the
offered warrants), to institutional investors pursuant to this prospectus
supplement and the accompanying prospectus. Each unit will be sold at a
negotiated price of $1.20. Each warrant has an exercise price of $1.30 per
share, and is exercisable for a period of five years commencing
immediately. The shares of common stock and the warrants will be issued
separately but will be purchased together in this offering.
The
warrants will not be listed on any securities exchange. Our common stock
is currently listed on the NYSE Amex under the symbol “ILI.” On March 4,
2010, the last reported sale price of our common stock on the NYSE Amex was
$1.50 per share. As of March 1, 2010, the aggregate market value of our
outstanding common stock held by non-affiliates was approximately $32,294,788
based on 32,118,588 outstanding shares of common stock, of which 23,922,065
shares were held by non-affiliates, and a price of $1.35 per share, which was
the last reported sale price of our common stock as quoted on the NYSE Amex on
March 1, 2010. We have offered securities with an aggregate market value of
approximately $7,612,502, consisting of the 4,375,002 shares of common stock and
the 1,750,000 shares of common stock issuable upon the exercise of the
warrants we are offering hereby, pursuant to General Instruction I.B.6. of
Form S-3 during the prior 12 calendar month period that ends on, and
includes, the date of this prospectus supplement.
This
investment involves a high degree of risk. Please see the section entitled “Risk
Factors” beginning on page S-3 of this prospectus supplement and
page 4 of the accompanying prospectus.
Rodman &
Renshaw, LLC acted as the placement agent on this transaction. The
placement agent is not purchasing or selling any of these securities nor is it
required to arrange for the sale of any specific number or dollar amount of
securities, but has agreed to use its reasonable best efforts to arrange for the
sale of the securities offered by this prospectus supplement. We have
agreed to pay the placement agent the placement agent fees set forth in the
table below.
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Per Unit
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Total
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Public
offering price
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$
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1.200
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|
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$
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5,250,002
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Placement
agent fees (1)
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$
|
0.054
|
|
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$
|
236,250
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|
Proceeds,
before expenses, to Interleukin Genetics, Inc. (2)
|
|
$
|
1.146
|
|
|
$
|
5,013,752
|
|
(1)
|
In
addition, we have agreed to reimburse the placement agent for certain of
its expenses as described under the “Plan of Distribution” in this
prospectus supplement.
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(2)
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Excluding
proceeds, if any, that we may receive upon the exercise of the
warrants.
|
Delivery
of the units is expected to be made on or about March 10, 2010, against payment
for such units to be received by us on the same date.
Neither the Securities and Exchange
Commission nor any state securities commission has
approved or disapproved of these
securities or determined if this prospectus is truthful
or complete. Any representation to
the contrary is a criminal offense.
RODMAN &
RENSHAW, LLC
The date
of this prospectus supplement is March 5, 2010
TABLE
OF CONTENTS
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Page
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Prospectus
Supplement
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About
this Prospectus Supplement
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ii
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Prospectus
Supplement Summary
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S-1
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Risk
Factors
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S-3
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Forward-Looking
Statements
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S-4
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Use
of Proceeds
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S-5
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Dilution
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S-5
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Description
of the Securities We Are Offering
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S-6
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Plan
of Distribution
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S-8
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Legal
Matters
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S-10
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Experts
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S-10
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Where
You Can Find More Information
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S-10
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Incorporation
of Certain Information by Reference
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S-10
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Prospectus
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About
this Prospectus
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1
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Prospectus
Summary
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2
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Risk
Factors
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4
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Special
Note regarding Forward-Looking Statements
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4
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Use
of Proceeds
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5
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Plan
of Distribution
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5
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Description
of Common Stock and Preferred Stock
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7
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Description
of Debt Securities
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12
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Description
of Warrants
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19
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Description
of Rights
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20
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Description
of Purchase Contracts
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22
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Description
of Units
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23
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Legal
Matters
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24
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Experts
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24
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Where
You Can Find More Information
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24
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Incorporation
of Documents by Reference
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24
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You
should rely only on information contained in this prospectus supplement, the
accompanying prospectus and the documents we incorporate by reference in this
prospectus supplement and the accompanying prospectus. We have not authorized
anyone to provide you with information that is different. You should not assume
that the information in this prospectus supplement or the accompanying
prospectus is accurate as of any date other than the date on the front of this
prospectus supplement or the accompanying prospectus or that any document that
we incorporated by reference in this prospectus supplement or the accompanying
prospectus is accurate as of any date other than its filing date. You should not
consider this prospectus supplement or the accompanying prospectus to be an
offer or solicitation relating to the securities in any jurisdiction in which
such an offer or solicitation relating to the securities is not authorized.
Furthermore, you should not consider this prospectus supplement or the
accompanying prospectus to be an offer or solicitation relating to the
securities if the person making the offer or solicitation is not qualified to do
so, or if it is unlawful for you to receive such an offer or
solicitation.
ABOUT
THIS PROSPECTUS SUPPLEMENT
We are
providing information to you about this offering in two parts. The first part is
this prospectus supplement, which provides the specific details regarding the
offering. The second part is the base prospectus, dated January 5, 2010,
included in the registration statement on Form S-3 (No. 333-163987)
which we are supplementing with the information contained in this supplement.
Generally, when we refer to this “prospectus,” we are referring to both
documents combined. Some of the information in the base prospectus may not apply
to this offering.
You
should also read and consider the information in the documents that we have
referred you to in “Incorporation of Certain Information by Reference” on
page S-10 of this prospectus supplement and “Where You Can Find More
Information” on page S-10 of this prospectus supplement before investing in
our securities. The information incorporated by reference is considered to be
part of this prospectus supplement, and information that we file later with the
Securities and Exchange Commission, or SEC, will automatically update and
supersede this information.
If
information in this prospectus supplement is inconsistent with the base
prospectus, you should rely on this prospectus supplement. We have not
authorized anyone to provide information different from that contained or
incorporated in this prospectus supplement and the accompanying prospectus. We
are offering to sell units only in jurisdictions where offers and sales are
permitted. The information contained or incorporated in this prospectus
supplement and the accompanying prospectus is accurate only as of the date of
such information, regardless of the time of delivery of this prospectus
supplement and the accompanying prospectus or of any sale of our
units.
In this
prospectus supplement, “we,” “us,” “our company,” “Interleukin,” and
“Interleukin Genetics” refer to Interleukin Genetics, Inc.
We own or
have the rights to use various trademarks, trade names or service marks that are
used in this prospectus, including our logo, Inherent Health™ and
PST®.
All other
trademarks, trade names or service marks that are used in this prospectus are
the property of their respective owners.
PROSPECTUS SUPPLEMENT
SUMMARY
This
summary highlights certain information about us, this offering and information
appearing elsewhere in this prospectus supplement, in the accompanying
prospectus and in the documents we incorporate by reference. This summary is not
complete and does not contain all of the information that you should consider
before investing in our securities. After you read this summary, to fully
understand this offering and its consequences to you, you should read this
entire prospectus supplement and the accompanying prospectus carefully,
including the information referred to under the heading “Risk Factors” in this
prospectus supplement beginning on page S-3, and the financial statements and
related notes that we incorporate by reference into this prospectus supplement
and the accompanying prospectus.
Interleukin
Genetics, Inc.
We are a
personalized health company that develops condition-focused, unique genetic
tests. Our overall mission is to provide genetic test products that can help
individuals maintain or improve their health through preventive measures. Our
vision is to use the science of applied genetics to empower individuals and
physicians to better understand the set of actions and steps necessary to guide
lifestyle and treatment options. We believe that the science of applied genetics
can help companies provide improved services to their customers, empower
individuals to personalize their health and assist in improving outcomes in drug
development and use. We currently have two primary focus areas to our business.
The first is personalized health, focused on providing genetic test products and
services via third party partners or directly to end users. These products are
developed with the goal of providing guidance to individuals interested in
improved wellness. The second is research and development, focused on developing
genetic tests linked to a partner’s products in medical and dental channels.
Both contribute toward our overall mission of providing products that can help
individuals maintain or improve their health through preventive or treatment
measures. Our revenue is derived from;
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selling
our genetic tests to the end users;
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·
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receiving
royalties from partners selling our
products;
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processing
genetic risk assessment tests in our Clinical Laboratory Improvement
Amendments of 1988, or CLIA,-certified lab for partners;
and
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·
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conducting
research to develop new genetic risk assessment tests for us and
partners.
|
We
believe that by providing important genetic information such as the
identification of variants in one or more genes, combined with a set of actions
and recommendations about possible interventions and guided therapies that may
be used based on those variants, we can help individuals improve their health
outcomes. We have patents covering the influence of certain gene variations for
a number of common chronic diseases and conditions.
We
currently have four genetic test products on the market under our Inherent
Health brand. The tests consist of:
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Weight
Management Genetic Test
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·
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Nutritional
Needs Genetic Test
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·
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Bone
Health Genetic Test
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·
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Heart
Health Genetic Test
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In addition w
e
currently market through a partner our Periodontal Disease Genetic Test, PST.
Corporate
Information
Our
executive offices are located at 135 Beaver Street, Waltham, Massachusetts
02452, and our telephone number is (781) 398-0700. We were incorporated in
Texas in 1986 and we re-incorporated in Delaware in March 2000. We maintain
websites at
www.ilgenetics.com
and
www.inherenthealth.com
. The
information on our websites is not incorporated by reference into this
prospectus supplement or accompanying prospectus and should not be considered to
be a part of this prospectus supplement or the accompanying prospectus. We have
included our website addresses only as an inactive textual reference and do not
intend them to be active links to our websites.
The
Offering
Common
stock offered by us
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4,375,002 shares
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Common
stock to be outstanding
|
|
after
this offering
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36,493,590 shares
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Warrants
offered by us
|
Warrants
to purchase up to 1,750,000 shares of our common stock. Each warrant
has an exercise price of $1.30 per share, and is exercisable for a period
of five years commencing immediately. This prospectus supplement also
relates to the offering of the shares of common stock issuable upon
exercise of the warrants. There is currently no market for the warrants
and none is expected to develop after this offering
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Use
of proceeds
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We
intend to use the net proceeds of this offering for our operations,
including, but not limited to, sales, marketing and promotion expenses,
research and development expenses, expansion of infrastructure, working
capital, and for other general corporate purposes, including, but not
limited to, capital expenditures, possible acquisitions, intellectual
property protection and enforcement, and repayment of existing
indebtedness or other corporate borrowings. See ‘‘Use of
Proceeds’’ on page S-5.
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Risk
Factors
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See
“Risk Factors” beginning on page S-3 for a discussion of factors you
should consider carefully when making an investment
decision.
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NYSE
Amex symbol
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ILI
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The
number of shares of common stock to be outstanding immediately after this
offering as shown above assumes that all of the units offered hereby are sold
and is based on 32,118,588 shares of common stock outstanding as of March
4, 2010, and does not include the following:
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·
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1,086,817 shares
of common stock issuable upon exercise of stock options outstanding under
our stock plans, at a weighted average exercise price of $2.58 per
share;
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·
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1,260,428 shares
of common stock available for future grant or issuance pursuant to our
stock plans;
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·
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28,160,200 shares
of common stock issuable upon the conversion of the 5,000,000 outstanding
shares of our Series A preferred stock held by Pyxis Innovations Inc., or
Pyxis;
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·
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1,584,981 shares
of common stock issuable upon conversion of $9.0 million in convertible
debt outstanding under our credit facility with
Pyxis;
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·
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400,000
shares of common stock issuable upon the exercise of outstanding warrants,
at an exercise price of $2.50 per share;
and
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|
·
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1,750,000 shares
of common stock issuable upon the exercise of the warrants offered hereby,
at an exercise price of $1.30 per
share.
|
RISK
FACTORS
Investing in our securities involves
risk. Before purchasing our securities, you should carefully consider the
following risk factors as well as all other information contained in this
prospectus supplement and the accompanying prospectus and incorporated by
reference, including our consolidated financial statements and the related
notes. The risks and uncertainties described below are not the only ones facing
us. Additional risks and uncertainties that we are unaware of, or that we
currently deem immaterial, also may become important factors that affect us. If
any of the following risks occur, our business, financial condition or results
of operations could be materially and adversely affected. In that case, the
trading price of our common stock could decline, and you may lose some or all of
your investment.
Risks
Related to this Offering and our Common Stock
Our
stock price has been and is likely to continue to be volatile and the market
price of our common stock may drop.
Since
January 31, 2008, our stock price has fluctuated from a low of $0.13 to a high
of $3.00. Furthermore, the stock market has recently experienced significant
volatility. The volatility of stocks for companies in our industry often does
not relate to the operating performance of the companies represented by the
stock. Some of the factors that may cause the market price of our common stock
to fluctuate include:
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demand
for and acceptance of our products;
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our
ability to develop new relationships and maintain and enhance existing
relationships with strategic
partners;
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regulatory
developments or enforcement in the United States and foreign
countries;
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developments
or disputes concerning patents or other proprietary
rights;
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introduction
of technological innovations or new products or services by us or our
competitors;
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failure
to secure adequate capital to fund our operations, or the issuance of
equity securities at prices below fair market
price;
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changes
in estimates or recommendations by securities analysts, if any cover our
common stock;
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future
sales of our common stock;
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general
market conditions;
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economic
and other external factors or other disasters or
crises;
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period-to-period
fluctuations in our financial results;
and
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overall
fluctuations in U.S. equity
markets.
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These and
other external factors may cause the market price and demand for our common
stock to fluctuate substantially, which may limit or prevent investors from
readily selling their shares of common stock and may otherwise negatively affect
the liquidity of our common stock. In addition, in the past, when the market
price of a stock has been volatile, holders of that stock have instituted
securities class action litigation against the company that issued the stock. If
any of our stockholders brought a lawsuit against us, we could incur substantial
costs defending the lawsuit. Such a lawsuit could also divert the time and
attention of our management.
We
may be delisted from the NYSE Amex resulting in a more limited market for our
common stock.
In
December 2008, we were notified of our failure to comply with the continued
listing standards of the NYSE Amex, referred to herein as the Exchange, under
section 1003(a)(iii) of the Exchange’s Company Guide because our stockholders’
equity was less than $6,000,000 and we have had losses from continuing
operations and net losses in our five most recent fiscal years. As of December
31, 2008 and September 30, 2009, our stockholders’ equity/(deficit) was $4.5
million and ($4.0) million, respectively. On January 27, 2009, we submitted to
the Exchange a plan to regain compliance with its continued listing
requirements. This plan consists of several elements, but is primarily focused
on increasing the sales of our products and services and raising additional
equity capital. On March 27, 2009, after a review of the compliance plan
initially submitted by us, the Corporate Compliance Staff of the Exchange
determined that the compliance plan did not make a reasonable demonstration of
our ability to regain compliance with the continued listing standards within the
compliance period. We appealed the determination.
On May
11, 2009, upon further review by the Exchange, we were notified that the plan to
meet the Exchange’s continued listing standards was accepted and the Exchange
granted us an extension through December 31, 2009 to become compliant. As a
result of the Staff’s extension, the Company was not required to attend a
hearing before the Listing Qualifications Panel. In December 2009 we submitted
additional information to the Exchange and have requested another extension. The
Exchange is continuing to review our progress toward regaining compliance.
Failure to make significant progress consistent with the plan or to regain
compliance with the continued listing standards could result in delisting from
the Exchange. If the NYSE Amex delists our common stock, we anticipate that our
common stock would be quoted on the OTC Bulletin Board or possibly the so-called
“pink sheets.” Even if our common stock is quoted on such systems, a delisting
by the NYSE Amex could hurt our investors by reducing the liquidity and market
price of our common stock. Additionally, a delisting could negatively affect us
by reducing the number of investors willing to hold or acquire our common stock,
which could negatively affect our ability to raise capital.
Management
will have broad discretion as to the use of the proceeds from this
offering.
We have
not designated the amount of net proceeds we will receive from this offering for
any particular purpose. Accordingly, our management will have broad discretion
as to the application of these net proceeds and could use them for purposes
other than those contemplated at the time of this offering. Our shareholders may
not agree with the manner in which our management chooses to allocate and spend
the net proceeds.
We
do not expect to pay dividends for the foreseeable future and you should not
expect to receive any funds without selling your shares of common
stock.
We have
never declared or paid any cash dividends on our capital
stock. Furthermore, our credit facility with Pyxis prohibits us from
paying cash dividends without Pyxis’s consent. We currently intend to retain any
earnings for use in the operation and expansion of our business and do not
anticipate paying any cash dividends on our common stock in the foreseeable
future. Therefore, you should not expect to receive any funds without selling
your shares.
There
is no public market for the warrants being offered in this
offering.
There is
no established public trading market for the warrants being offered in this
offering, and we do not expect a market to develop. In addition, we do not
intend to apply for listing of the warrants on any securities
exchange.
Holders
of our warrants will have no rights as a shareholder until such holders exercise
their warrants.
Until you
acquire shares of common stock upon exercise of your warrants, you will have no
rights with respect to the shares underlying such warrants. Upon exercise of
your warrants, you will be entitled to exercise the rights of a shareholder only
as to matters for which the record date occurs after the exercise
date.
Additional
Risks Related to Our Business, Operations and an Investment in our
Securities
For a
discussion of additional risks associated with our business, our industry and an
investment in our securities, see the risk factors set forth under
the heading “Risk Factors”
included in our Annual Report on Form 10-K for the year ended December 31,
2008, as revised or supplemented by our subsequent quarterly reports on
Form 10-Q or our current reports on Form 8-K, all of which are on file
with the SEC and are incorporated
by reference in this prospectus
supplement and accompanying prospectus. Before making an investment decision,
you should carefully consider these risks as well as other information we
include or incorporate by reference in this prospectus supplement and
accompanying prospectus. You should be able to bear a complete loss
of your investment.
FORWARD-LOOKING
STATEMENTS
This
prospectus supplement and the accompanying prospectus and the documents we have
filed with the SEC that are incorporated by reference into this prospectus
supplement and the accompanying prospectus contain forward-looking statements.
These forward-looking statements may be included herein or incorporated by
reference in this prospectus and include, in particular, statements about our
plans, strategies and prospects and may be identified by terminology such as
“may,” “will,” “should,” “expect,” “scheduled,” “plan,” “intend,” “anticipate,”
“believe,” “estimate,” “aim,” “potential,” or “continue” or the negative of
those terms or other comparable terminology. These forward-looking statements
are subject to risks, uncertainties and assumptions about us. Although we
believe that our plans, intentions and expectations are reasonable, we may not
achieve our plans, intentions or expectations.
Important
factors that could cause actual results to differ materially from the
forward-looking statements we make in this prospectus supplement and
accompanying prospectus are set forth in “Risk Factors.” All forward-looking
statements attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the cautionary statements in “Risk Factors” and
the information incorporated by reference therein, in which we have disclosed
the material risks related to our business. These forward-looking statements
involve risks and uncertainties, and the cautionary statements identify
important factors that could cause actual results to differ materially from
those predicted in any forward-looking statements. We undertake no obligation to
update any of the forward-looking statements after the date of this prospectus
supplement to conform those statements to reflect the occurrence of
unanticipated events, except as required by applicable law. You should read this
prospectus supplement and the accompanying prospectus and the documents
incorporated by reference completely and with the understanding that our actual
future results, levels of activity, performance and achievements may be
materially different from what we expect. We qualify all of our forward-looking
statements by these cautionary statements.
USE
OF PROCEEDS
We
estimate that the net proceeds to us from the sale of the securities offered by
this prospectus supplement and the accompanying prospectus will be approximately
$4.9 million, after deducting the placement agent’s fees and other estimated
offering expenses payable by us, which include legal, accounting and printing
fees, and excluding the proceeds, if any, from the exercise of the warrants
issued in this offering. We intend to use the net proceeds from the sale of
securities under this prospectus supplement for our operations and for other
general corporate purposes, including, but not limited to sales, marketing and
promotion expenses, research and development expenses, expansion of
infrastructure, working capital, and for other general corporate purposes,
including, but not limited to, capital expenditures, possible acquisitions,
intellectual property protection and enforcement, and repayment of existing
indebtedness or other corporate borrowings. We have not determined the amount of
net proceeds to be used specifically for the foregoing purposes. As a result,
our management will have broad discretion in the allocation of the net proceeds.
Pending use of the net proceeds, we intend to invest any proceeds in a variety
of capital preservation instruments, including short-term, investment-grade,
interest-bearing instruments.
DILUTION
Our net
tangible book value on September 30, 2009 was approximately $(4.7) million,
or approximately $(0.15) per share of common stock. Net tangible book
value per share is determined by dividing our net tangible book value, which
consists of tangible assets less total liabilities, by the number of shares of
common stock outstanding on that date. Without taking into account any
other changes in our net tangible book value after September 30, 2009,
other than to give effect to our receipt of the estimated net proceeds from the
sale of 4,375,002 units at an offering price of $1.20 per unit, less the
placement agent fees and our estimated offering expenses, our as adjusted net
tangible book value as of September 30, 2009, after giving effect to the
items above, would have been approximately $132,000, or $0.00 per share.
This represents an immediate increase in net tangible book value of $0.15 per
share of common stock to our existing stockholders and an immediate dilution in
net tangible book value of $1.20 per share of common stock to purchasers of
units in this offering. The following table illustrates this per share
dilution:
Public
offering price per unit
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|
|
|
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$
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1.20
|
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Net
tangible book value per share as of September 30, 2009
|
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$
|
(0.15
|
)
|
|
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Increase
per share attributable to this offering
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$
|
0.15
|
|
|
|
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As
adjusted net tangible book value per share after this
offering
|
|
|
|
|
|
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0.00
|
|
Dilution
per share to purchasers in this offering
|
|
|
|
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$
|
1.20
|
|
The above
table is based on 32,079,833 shares of our common stock outstanding as of
September 30, 2009 and excludes, as of September 30,
2009:
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·
|
1,487,117 shares
of common stock issuable upon exercise of stock options outstanding under
our stock plans, at a weighted average exercise price of $2.83 per
share;
|
|
·
|
1,367,178 shares
of common stock available for future grant or issuance pursuant to our
stock plans;
|
|
·
|
28,160,200 shares
of common stock issuable upon the conversion of the 5,000,000 outstanding
shares of our Series A preferred stock held by
Pyxis;
|
|
·
|
880,545 shares
of common stock issuable upon conversion of $5.0 million in convertible
debt outstanding under our credit facility with
Pyxis;
|
|
·
|
400,000
shares of common stock issuable upon the exercise of outstanding warrants,
at an exercise price of $2.50 per share;
and
|
|
·
|
1,750,000 shares
of common stock issuable upon the exercise of the warrants offered hereby,
at an exercise price of $1.30 per
share.
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To the
extent that any of these shares are issued, or options or warrants are
exercised, or the Series A preferred stock or convertible debt is converted, new
options or other equity incentive awards are issued under our stock plans or we
otherwise issue additional shares of common stock in the future, there will be
further dilution to the new investors.
DESCRIPTION
OF THE SECURITIES WE ARE OFFERING
In this
offering, we are offering a maximum of 4,375,002 units, consisting
of 4,375,002 shares of common stock and warrants to purchase 1,750,000
shares of common stock. Each unit consists of one share of common stock
and warrants to purchase 0.40 of a share of common stock at an exercise
price of $1.30 per share. The shares of common stock and the warrants will
be issued separately but will be purchased together in this offering. This
prospectus supplement also relates to the offering of shares of common stock
upon the exercise, if any, of the warrants issued in this offering.
Common
Stock
The
material terms and provisions of our common stock are described under the
caption “Description of Common Stock and Preferred Stock” starting on
page 7 of the accompanying prospectus.
Warrants
The
material terms and provisions of the warrants being offered pursuant to this
prospectus supplement and the accompanying prospectus are summarized below. A
form of the warrants is filed as an exhibit to a current report on Form 8-K
filed with the SEC in connection with this offering and reference is made
thereto for a complete description of the warrants.
Term; Exercise Price and
Exercisability
. The warrants to be issued in this offering
represent the rights to purchase up to 1,750,000 shares of common stock at
an exercise price of $1.30 per share. Each warrant will be exercisable for a
period of five years commencing immediately. The number of shares of
common stock that may be acquired by any holder upon any exercise of the warrant
will be limited to the extent necessary to insure that, following such exercise
(or other issuance), the total number of shares of common stock then
beneficially owned by such holder and its affiliates and any other persons whose
beneficial ownership of our common stock would be aggregated with the holder’s
for purposes of Section 13(d) of the Securities Exchange Act of 1934,
as amended, does not exceed 4.9% of the total number of issued and outstanding
shares of common stock (including for such purpose the shares of common stock
issuable upon such exercise), or beneficial ownership limitation. The holder may
elect to change this beneficial ownership limitation from 4.9% to 9.99% of the
total number of issued and outstanding shares of common stock (including for
such purpose the shares of common stock issuable upon such exercise) upon 61
days’ prior written notice.
Manner of Exercise
.
Holders of the warrants may exercise their warrants to purchase shares of common
stock on or before the expiration date by delivering (i) notice of
exercise, appropriately completed and duly signed, and (ii) if such holder
is not utilizing the cashless exercise provisions with respect to the warrants,
payment of the exercise price for the number of shares with respect to which the
warrant is being exercised. Warrants may be exercised in whole or in part, but
only for full shares. We provide certain buy-in rights to a holder if we
fail to deliver the shares of common stock underlying the warrants by the third
trading day after the date on which the holder satisfies all of the requirements
for exercise. The buy-in rights apply if after the third trading day after the
date on which the holder satisfies all of the requirements for exercise, the
holder purchases (in an open market transaction or otherwise) shares of common
stock to deliver in satisfaction of a sale by the holder of the warrant shares
that the holder anticipated receiving from us upon exercise of the warrant. In
this event, we will:
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pay
in cash to the holder the amount equal to the excess (if any) of the
buy-in price over the product of (A) such number of shares of common
stock, times (B) the price at which the sell order giving rise to
holder’s purchase obligation was executed;
and
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at
the election of holder, either (A) reinstate the portion of the
warrant as to such number of shares of common stock, or (B) deliver
to the holder a certificate or certificates representing such number of
shares of common stock.
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In
addition, the warrant holders are entitled to a “cashless exercise” option if,
at any time of exercise, there is no effective registration statement
registering, or no current prospectus available for, the issuance or resale of
the shares of common stock underlying the warrants. This option entitles the
warrant holders to elect to receive fewer shares of common stock without paying
the cash exercise price. The number of shares to be issued would be determined
by a formula based on the total number of shares with respect to which the
warrant is being exercised, the daily volume weighted average price for our
common stock on the trading day immediately prior to the date of exercise and
the applicable exercise price of the warrants.
The
shares of common stock issuable on exercise of the warrants will be, when issued
and paid for in accordance with the warrants, duly authorized, validly issued
and fully paid and non-assessable. We will authorize and reserve at least that
number of shares of common stock equal to the number of shares of common stock
issuable upon exercise of all outstanding warrants.
Fundamental
Transaction
. If, at any time while the warrants are outstanding,
(1) we consolidate or merge with or into another corporation and we are not
the surviving corporation, (2) we sell, lease, license, assign, transfer,
convey or otherwise dispose of all or substantially all of our assets,
(3) any purchase offer, tender offer or exchange offer (whether by us or
another individual or entity) is completed pursuant to which holders of our
common stock are permitted to sell, tender or exchange their shares for other
securities, cash or property and has been accepted by the holders of 50% or more
of our outstanding shares of common stock, (4) we effect any
reclassification or recapitalization of our common stock or any compulsory share
exchange pursuant to which our shares of common stock are converted into or
exchanged for other securities, cash or property, or (5) we consummate a
stock or share purchase agreement or other business combination with another
person or entity whereby such other person or entity acquires more than 50% of
our outstanding common stock, each, a “Fundamental Transaction,” then upon any
subsequent exercise of the warrants, the holders thereof will have the right to
receive the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of warrant shares then issuable upon exercise of the
warrant, and any additional consideration payable as part of the Fundamental
Transaction. Any successor to us or surviving entity will assume the obligations
under the warrant.
In the
event of certain Fundamental Transactions, the holders of the warrants will be
entitled to receive, in lieu of our common stock and at the holders’ option,
cash in an amount equal to the value of the remaining unexercised portion of the
warrant on the date of the transaction determined using the Black-Scholes option
pricing model.
Certain Adjustments
.
The exercise price and the number of shares of common stock purchasable upon the
exercise of the warrants are subject to adjustment upon the occurrence of
specific events, including stock dividends, stock splits, combinations and
reclassifications of our common stock and rights offerings and pro rata
distributions with respect to all holders of our common
stock.
Delivery of
Certificates
. Upon the holder’s exercise of a warrant, we will
promptly, but in no event later than three trading days after the exercise date
(referred to as the “exercise share delivery date”), issue and deliver, or cause
to be issued and delivered, a certificate for the shares of common stock
issuable upon exercise of the warrant. In addition, we will, if the holder
provides the necessary information to us, issue and deliver the shares
electronically through The Depository Trust Corporation through its Deposit
Withdrawal Agent Commission System (DWAC) or another established clearing
corporation performing similar functions.
Notice of Corporate
Action
. We will provide at least 20 days prior notice to holders of
the warrants to provide them with the opportunity to exercise their warrants and
hold shares of common stock in order to participate in or vote on the following
corporate events:
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if
we shall take a record of the holders of our common stock for the purpose
of entitling them to receive a dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any
other right;
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if
we authorize or approve, enter into any agreement contemplating, or
solicit shareholder approval for any transaction that would be deemed a
Fundamental Transaction as described above;
or
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a
voluntary dissolution, liquidation or winding up of our
company.
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Additional Provisions
.
We are not required to issue fractional shares upon the exercise of the
warrants. No holders of the warrants will possess any rights as a shareholder
under those warrants until the holder exercises those warrants. The warrants may
be transferred independent of the shares of common stock they were issued with,
on a form of assignment, subject to all applicable laws.
PLAN
OF DISTRIBUTION
We have
entered into a placement agency agreement, dated as of March 3, 2010, with
Rodman & Renshaw, LLC, as placement agent which we refer to as the
placement agency agreement. Subject to the terms and conditions contained
in the placement agency agreement, Rodman & Renshaw, LLC has agreed to
act as our placement agent in connection with this offering. The placement agent
is not purchasing or selling any securities offered by this prospectus
supplement and the accompanying prospectus, nor is the placement agent required
to arrange the purchase or sale of any specific number or dollar amount of the
securities, but the placement agent has agreed to use its reasonable best
efforts to arrange for the sale of all of the securities in this offering. There
is no requirement that any minimum number of units or dollar amount of units be
sold in this offering and there can be no assurance that we will sell all or any
of the units being offered.
The
placement agency agreement provides that the obligations of the placement agent
and the investors are subject to certain conditions precedent, including, among
other things, the absence of any material adverse change in our business and the
receipt of certain opinions, letters and certificates from us or our
counsel.
We
currently anticipate that the closing of this offering will take place on or
about March 10, 2010. On the closing date, the following will
occur:
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we
will receive funds in the amount of the aggregate purchase
price;
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the
placement agent will receive the placement agent fees in accordance with
the terms of the placement agency agreement;
and
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we
will deliver the units to the
investors.
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The
placement agent proposes to arrange for the sale to one or more purchasers of
the securities offered pursuant to this prospectus supplement and the
accompanying prospectus.
We will
pay the placement agent an aggregate cash commission equal to 4.5% of the gross
proceeds from the sale of the units in this offering. Subject to compliance with
FINRA Rule 5110(f)(2)(D), we will also reimburse the placement agent for legal
and other expenses incurred by it in connection with this offering in an amount
equal to 0.75% of the aggregate offering proceeds but in no event more than
$25,000.
Under no
circumstances will the fee, commission or discount received by the placement
agent or any other member of FINRA or independent broker-dealer exceed 8% of the
gross proceeds to us in this offering or any other offering in the United States
pursuant to this prospectus supplement and the accompanying
prospectus.
The
estimated offering expenses payable by us, in addition to the aggregate fee of
$236,250 due to the placement agent, are approximately $150,000 which includes
legal, accounting and filing fees various other fees and expenses associated
with registering the securities and listing the common stock. After deducting
certain fees due to the placement agent and our estimated offering expenses, we
expect the net proceeds from this offering to be approximately $4.9 million if
the maximum number of units are sold.
The
following table shows the per unit and total commissions we will pay to the
placement agent in connection with the sale of the units offered pursuant to
this prospectus supplement and the accompanying prospectus, assuming the
purchase of all of the units offered hereby.
Per
unit placement agent fees
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$
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0.054
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Maximum
offering total
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$
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236,250
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Because
there is no minimum offering amount required as a condition to closing in this
offering, the actual total offering fees, if any, are not presently determinable
and may be substantially less than the maximum amount set forth
above.
We have
agreed to indemnify the placement agent and certain other persons against
certain liabilities relating to or arising out of the placement agent’s
activities under the placement agency agreement. We also have agreed to
contribute to payments the placement agent may be required to make in respect of
such liabilities.
A copy of
the placement agency agreement, the form of securities purchase agreement we
entered into with the purchasers and the form of warrant are included as
exhibits to a current report on Form 8-K that was filed with the SEC in
connection with the consummation of this offering.
The
placement agent has informed us that it will not engage in over allotment,
stabilizing transactions or syndicate covering transactions in connection with
this offering.
The
transfer agent for our shares of common stock to be issued in this offering is
Computershare Trust Company. We will act as transfer agent for the
warrants being offered hereby.
Our
common stock is currently traded on the NYSE Amex under the symbol “ILI.”
The warrants to purchase shares of common stock issued to the investors in this
offering are not expected to be eligible for trading on any market.
The
purchase price per unit and the exercise price for the warrants were determined
based on negotiations with the purchasers and discussions with the placement
agent based on current market factors.
LEGAL
MATTERS
The
validity of the issuance of the securities offered hereby will be passed upon
for us by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. The
placement agent is being represented in connection with this offering by
Weinstein Smith LLP, New York, New York.
EXPERTS
The
financial statements and schedule incorporated by reference in this prospectus
supplement have been so incorporated by reference in reliance upon the report of
Grant Thornton LLP, independent registered public accountants, upon the
authority of said firm as experts in accounting and auditing in giving said
reports.
WHERE
YOU CAN FIND MORE INFORMATION
We are
subject to the reporting requirements of the Securities Exchange Act of 1934, as
amended, and file annual, quarterly and current reports, proxy statements and
other information with the SEC. You may read and copy these reports, proxy
statements and other information at the SEC's public reference facilities at
100 F Street, N.E., Room 1580, Washington, D.C. 20549. You can request
copies of these documents by writing to the SEC and paying a fee for the copying
cost. Please call the SEC at 1-800-SEC-0330 for more information about the
operation of the public reference facilities. SEC filings are also available at
the SEC's web site at
http://www.sec.gov.
Copies of
information filed by us with the SEC are also available on our website at
http://www.ilgenetics.com
under the heading “Investors.”
Our
common stock is listed on the NYSE Amex, and you can read and inspect our
filings at the offices of the Financial Industry Regulatory Authority at 1735 K
Street, Washington, D.C. 20006.
This
prospectus supplement and the accompanying prospectus are only part of a
registration statement on Form S-3 that we have filed with the SEC under
the Securities Act of 1933, as amended, and therefore omit certain information
contained in the registration statement. We have also filed exhibits and
schedules with the registration statement that are excluded from this prospectus
supplement and the accompanying prospectus, and you should refer to the
applicable exhibit or schedule for a complete description of any statement
referring to any contract or other document. You may inspect a copy of the
registration statement, including the exhibits and schedules, without charge, at
the public reference room or obtain a copy from the SEC upon payment of the fees
prescribed by the SEC.
INCORPORATION
OF DOCUMENTS BY REFERENCE
The SEC
allows us to “incorporate by reference” information that we file with them.
Incorporation by reference allows us to disclose important information to you by
referring you to those other documents. The information incorporated by
reference is an important part of this prospectus supplement and the
accompanying prospectus, and information that we file later with the SEC will
automatically update and supersede this information. The documents we are
incorporating by reference into this prospectus supplement are (unless otherwise
noted, the SEC file number for each of the documents listed below is
001-32715):
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Our
annual report on Form 10-K for the fiscal year ended
December 31, 2008, filed on March 25,
2009;
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Our
quarterly reports on Form 10-Q for the quarters ended March 31,
2009, June 30, 2009 and September 30, 2009, filed on
May 14, 2009, August 13, 2009 and November 12, 2009,
respectively;
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Our
current reports on Form 8-K filed on January 15, 2009,
March 13, 2009, March 31, 2009, May 15, 2009 (with respect
to Item 3.01 only), June 4, 2009, July 8, 2009,
October 30, 2009, January 25, 2010, February 2, 2010, March 1, 2010,
March 3, 2010 and March 5, 2010;
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The
portions of our Definitive Proxy Statement on Schedule 14A that are
deemed "filed" with the SEC under the Securities Exchange Act of 1934, as
amended, filed on April 30,
2009;
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The
description of our common stock contained in Item 1 of our
Registration Statement on Form 8-A dated December 27, 2005,
including any amendment or report filed for the purpose of updating such
description;
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all
reports and other documents subsequently filed by us pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of
1934, as amended, after the date of this prospectus and prior to the
termination or completion of the offering of securities under this
prospectus shall be deemed to be incorporated by reference in this
prospectus and to be a part hereof from the date of filing such reports
and other documents.
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Any
statement contained in this prospectus supplement or in a document incorporated
or deemed to be incorporated by reference into this prospectus supplement will
be deemed to be modified or superseded for purposes of this prospectus to the
extent that a statement contained in this prospectus supplement or any other
subsequently filed document that is deemed to be incorporated by reference into
this prospectus supplement modifies or supersedes the statement. Any statement
so modified or superseded will not be deemed, except as so modified or
superseded, to constitute a part of this prospectus supplement.
You may
request, orally or in writing, a copy of any or all of the documents
incorporated herein by reference. These documents will be provided to you at no
cost, by contacting: Investor Relations, Interleukin Genetics, Inc., 135
Beaver Street, Waltham, Massachusetts 02452. Our telephone number is
(781) 398-0700.
You
should rely only on information contained in, or incorporated by reference into,
this prospectus supplement and the accompanying prospectus. We have not
authorized anyone to provide you with information different from that contained
in this prospectus or incorporated by reference in this prospectus supplement
and the accompanying prospectus. We are not making offers to sell the securities
in any jurisdiction in which such an offer or solicitation is not authorized or
in which the person making such offer or solicitation is not qualified to do so
or to anyone to whom it is unlawful to make such offer or
solicitation.
PROSPECTUS
INTERLEUKIN
GENETICS, INC.
$75,000,000
COMMON
STOCK
PREFERRED
STOCK
DEBT
SECURITIES
WARRANTS
RIGHTS
PURCHASE
CONTRACTS
UNITS
This
prospectus will allow us to issue, from time to time at prices and on terms to
be determined at or prior to the time of the offering, up to $75,000,000 of any
combination of the securities described in this prospectus, either individually
or in units. This prospectus describes the general terms of these securities and
the general manner in which these securities will be offered. We will provide
you with specific terms of any offering in one or more supplements to this
prospectus. The prospectus supplements will also describe the specific manner in
which these securities will be offered and may also supplement, update or amend
information contained in this document. You should read this prospectus and any
prospectus supplement, as well as any documents incorporated by reference into
this prospectus or any prospectus supplement, carefully before you invest. Our
securities may be sold directly by us to you, through agents designated from
time to time or to or through underwriters or dealers. For additional
information on the methods of sale, you should refer to the section entitled
"Plan of Distribution" in this prospectus and in the applicable prospectus
supplement. If any underwriters or agents are involved in the sale of our
securities with respect to which this prospectus is being delivered, the names
of such underwriters or agents and any applicable fees, commissions or discounts
and over-allotment options will be set forth in a prospectus supplement. The
price to the public of such securities and the net proceeds that we expect to
receive from such sale will also be set forth in a prospectus
supplement.
Our
common stock is listed on the NYSE Alternext under the symbol "ILI." On
January 5, 2010, the last reported sale price of our common stock was $0.81
per share. The applicable prospectus supplement will contain information, where
applicable, as to listing, if any, on NYSE Alternext or any securities market or
other securities exchange of other securities covered by the prospectus
supplement. Prospective purchasers of our securities are urged to obtain current
information as to the market prices of our securities, where applicable. As of
November 11, 2009, the aggregate market value of our outstanding common
stock held by non-affiliates was approximately $25,974,930, based on 32,102,435
shares of outstanding common stock, of which 25,218,379 shares were held by
non-affiliates, and a per share price of $1.03, the closing sale price of our
common stock on that date. We have not offered any securities during the period
of 12 calendar months immediately prior to, and including, the date of this
prospectus pursuant to General Instruction I.B.6. of
Form S-3.
Investing
in our securities involves a high degree of risk. Before deciding whether to
invest in our securities, you should consider carefully the risks that we have
described on page 4 of this prospectus under the caption "Risk Factors." We
may include specific risk factors in supplements to this prospectus under the
caption "Risk Factors." This prospectus may not be used to offer or sell our
securities unless accompanied by a prospectus supplement.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal
offense.
The date
of this prospectus is January 5, 2010.
Table of
Contents
TABLE
OF CONTENTS
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Page
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ABOUT
THIS PROSPECTUS
|
1
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PROSPECTUS
SUMMARY
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2
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RISK
FACTORS
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4
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SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
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4
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USE
OF PROCEEDS
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5
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PLAN
OF DISTRIBUTION
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5
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DESCRIPTION
OF COMMON STOCK AND PREFERRED STOCK
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7
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DESCRIPTION
OF DEBT SECURITIES
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12
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DESCRIPTION
OF WARRANTS
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19
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DESCRIPTION
OF RIGHTS
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20
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DESCRIPTION
OF PURCHASE CONTRACTS
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22
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DESCRIPTION
OF UNITS
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23
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LEGAL
MATTERS
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24
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EXPERTS
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24
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WHERE
YOU CAN FIND MORE INFORMATION
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24
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INCORPORATION
OF DOCUMENTS BY REFERENCE
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24
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ABOUT THIS
PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities
and Exchange Commission, or SEC, utilizing a "shelf" registration process. Under
this shelf registration process, we may offer shares of our common stock and
preferred stock, various series of debt securities and/or warrants, rights or
purchase contracts to purchase any of such securities, either individually or in
units, in one or more offerings, with a total value of up to $75,000,000. This
prospectus provides you with a general description of the securities we may
offer. Each time we offer a type or series of securities under this prospectus,
we will provide a prospectus supplement that will contain specific information
about the terms of that offering.
This
prospectus does not contain all of the information included in the registration
statement. For a more complete understanding of the offering of the securities,
you should refer to the registration statement, including its exhibits. The
prospectus supplement may also add, update or change information contained or
incorporated by reference in this prospectus. However, no prospectus supplement
will fundamentally change the terms that are set forth in this prospectus or
offer a security that is not registered and described in this prospectus at the
time of its effectiveness. This prospectus, together with the applicable
prospectus supplements and the documents incorporated by reference into this
prospectus, includes all material information relating to the offering of
securities under this prospectus. You should carefully read this prospectus, the
applicable prospectus supplement, the information and documents incorporated
herein by reference and the additional information under the heading "Where You
Can Find More Information" before making an investment decision.
You
should rely only on the information we have provided or incorporated by
reference in this prospectus or any prospectus supplement. We have not
authorized anyone to provide you with information different from that contained
or incorporated by reference in this prospectus. No dealer, salesperson or other
person is authorized to give any information or to represent anything not
contained or incorporated by reference in this prospectus. You must not rely on
any unauthorized information or representation. This prospectus is an offer to
sell only the securities offered hereby, but only under circumstances and in
jurisdictions where it is lawful to do so. You should assume that the
information in this prospectus or any prospectus supplement is accurate only as
of the date on the front of the document and that any information we have
incorporated herein by reference is accurate only as of the date of the document
incorporated by reference, regardless of the time of delivery of this prospectus
or any sale of a security.
This
prospectus may not be used to consummate sales of our securities, unless it is
accompanied by a prospectus supplement. To the extent there are inconsistencies
between any prospectus supplement, this prospectus and any documents
incorporated by reference, the document with the most recent date will
control.
"Interleukin
Genetics," "Interleukin," "the Company," "we," "us," "our" and similar terms
refer to Interleukin Genetics, Inc. and our subsidiaries, unless the
context requires otherwise.
Table of
Contents
PROSPECTUS
SUMMARY
The following is a summary of what
we believe to be the most important aspects of our business and the offering of
our securities under this prospectus. We urge you to read this entire
prospectus, including the more detailed consolidated financial statements, notes
to the consolidated financial statements and other information incorporated by
reference from our other filings with the SEC or included in any applicable
prospectus supplement. Investing in our securities involves risks. Therefore,
carefully consider the risk factors in any prospectus supplements and in our
most recent annual and quarterly filings with the SEC, as well as other
information in this prospectus and any prospectus supplements and the documents
incorporated by reference herein or therein, before purchasing our securities.
Each of the risk factors could adversely affect our business, operating results
and financial condition, as well as adversely affect the value of an investment
in our securities.
About
Interleukin Genetics, Inc.
Interleukin
Genetics, Inc. is a genetics-focused health care company that develops
genetic tests for sale to the emerging personalized health market. Our vision is
to build a leading personalized health and wellness company. We believe that the
science of applied genetics can empower individuals to personalize their health
as well as provide valuable information to assist in drug development. We
currently have two primary focus areas to our business. The first is focused on
providing genetic test products to customers. These products are distributed via
sales partners and our own sales channels, with the goal of providing guidance
for the individual interested in improving their health and wellness. The second
is a research and development effort focused on developing genetic tests linked
to a partner's products for marketing and sales into medical and dental
channels. Both areas contribute toward our overall mission of providing products
that can help individuals improve and maintain their health through preventive
or actionable measures. We plan to pursue improving personalized healthcare for
patients by:
•
processing
genetic risk assessment tests in our CLIA-certified lab or in labs of sub
licensees for ourselves or for partners;
•
distributing
existing and developing new genetic risk assessment tests for use in multiple
indications, countries and demographics;
•
conducting
funded research with partners
We
believe that by providing important genetic information to our customers or
identifying those individuals whose risk for certain chronic diseases may be
increased due to their genetics, can help improve their health outcomes. We have
patents covering the influence of certain gene variations on risk for a number
of common chronic diseases and conditions.
We
currently have four genetic test products on the market under our Inherent
Health™ brand. The tests consist of:
•
Weight
Management Genetic Test
•
Nutritional
Needs Genetic Test
•
Bone
Health Genetic Test
•
Heart
Health Genetic Test
In
addition we currently market through a partner our Periodontal Disease Genetic
Test, PST®.
Our
executive offices are located at 135 Beaver Street, Waltham, Massachusetts
02452, and our telephone number is (781) 398-0700. We were incorporated in
Texas in 1986 and we re-incorporated in Delaware in March 2000. We maintain a
website at
www.ilgenetics.com
. Our
annual reports on
Table of
Contents
Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and all
amendments to such reports are available to you free of charge through the
"Investors" section of our website as soon as practicable after such materials
have been electronically filed with, or furnished to, the Securities and
Exchange Commission. The information contained on our website is not
incorporated by reference into this Form 10-K. We have included our website
address only as an inactive textual reference and do not intend it to be an
active link to our website
Offerings
Under This Prospectus
Under
this prospectus, we may offer shares of our common stock and preferred stock,
various series of debt securities and/or warrants, rights or purchase contracts
to purchase any of such securities, either individually or in units, with a
total value of up to $75,000,000, from time to time at prices and on terms to be
determined by market conditions at the time of offering. This prospectus
provides you with a general description of the securities we may offer. Each
time we offer a type or series of securities under this prospectus, we will
provide a prospectus supplement that will describe the specific amounts, prices
and other important terms of the securities, including, to the extent
applicable:
•
designation
or classification;
•
aggregate
principal amount or aggregate offering price;
•
maturity,
if applicable;
•
rates and
times of payment of interest or dividends, if any;
•
redemption,
conversion or sinking fund terms, if any;
•
voting or
other rights, if any;
•
conversion
or exercise prices, if any; and
•
important
United States federal income tax considerations.
The
prospectus supplement also may add, update or change information contained in
this prospectus or in documents we have incorporated by reference into this
prospectus. However, no prospectus supplement will offer a security that is not
registered and described in this prospectus at the time of its
effectiveness.
This
prospectus may not be used to consummate a sale of any securities unless it is
accompanied by a prospectus supplement.
We may
sell the securities directly to investors or to or through agents, underwriters
or dealers. We, and our agents or underwriters, reserve the right to accept or
reject all or part of any proposed purchase of securities. If we offer
securities through agents or underwriters, we will include in the applicable
prospectus supplement:
•
the names
of those agents or underwriters;
•
applicable
fees, discounts and commissions to be paid to them;
•
details
regarding over-allotment options, if any; and
•
the net
proceeds to us.
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RISK FACTORS
Investing
in our securities involves significant risk. The prospectus supplement
applicable to each offering of our securities will contain a discussion of the
risks applicable to an investment in Interleukin Genetics. Prior to making a
decision about investing in our securities, you should carefully consider the
specific factors discussed under the heading "Risk Factors" in the applicable
prospectus supplement, together with all of the other information contained or
incorporated by reference in the prospectus supplement or appearing or
incorporated by reference in this prospectus. You should also consider the
risks, uncertainties and assumptions discussed under the heading "Risk Factors"
included in our most recent annual report on Form 10-K, as revised or
supplemented by our subsequent quarterly reports on Form 10-Q or our
current reports on Form 8-K, each of which are on file with the SEC and are
incorporated herein by reference, and which may be amended, supplemented or
superseded from time to time by other reports we file with the SEC in the
future.
SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS
The SEC
encourages companies to disclose forward-looking information so that investors
can better understand a company's future prospects and make informed investment
decisions. This prospectus and the documents we have filed with the SEC that are
incorporated herein by reference contain such "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995.
Such
statements in connection with any discussion of future operations or financial
performance are identified by the use of words such as "may," "anticipate,"
"estimate," "expect," "project," "intend," "plan," "believe," and other words
and terms of similar meaning. Such statements are based on management's
expectations and are subject to certain factors, risks and uncertainties that
may cause actual results, outcome of events, timing and performance to differ
materially from those expressed or implied by such statements. These risks and
uncertainties include, but are not limited to, the factors detailed under the
heading "Risk Factors" in this prospectus as updated and supplemented by the
discussion of risks and uncertainties under "Risk Factors" contained in any
supplements to this prospectus and in our most recent annual report on
Form 10-K, as revised or supplemented by our subsequent quarterly reports
on Form 10-Q or our current reports on Form 8-K, as well as any
amendments thereto, as filed with the SEC and which are incorporated herein by
reference. The information contained in this document is believed to be current
as of the date of this document. We do not intend to update any of the
forward-looking statements after the date of this document to conform these
statements to actual results or to changes in our expectations, except as
required by law.
In light
of these assumptions, risks and uncertainties, the results and events discussed
in the forward-looking statements contained in this prospectus or in any
document incorporated herein by reference might not occur. Investors are
cautioned not to place undue reliance on the forward-looking statements, which
speak only as of the date of this prospectus or the date of the document
incorporated by reference in this prospectus. We are not under any obligation,
and we expressly disclaim any obligation, to update or alter any forward-looking
statements, whether as a result of new information, future events or otherwise.
All subsequent forward-looking statements attributable to us or to any person
acting on our behalf are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section.
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USE OF PROCEEDS
We cannot
assure you that we will receive any proceeds in connection with securities
offered pursuant to this prospectus. Unless otherwise indicated in the
applicable prospectus supplement, we intend to use any net proceeds from the
sale of securities under this prospectus for our operations, including, but not
limited to, sales, marketing and promotion expenses, research and development
expenses, expansion of infrastructure, working capital, and for other general
corporate purposes, including, but not limited to, repayment or refinancing of
existing indebtedness or other corporate borrowings, capital expenditures and
possible acquisitions. We have not determined the amounts we plan to spend on
any of the areas listed above or the timing of these expenditures. As a result,
our management will have broad discretion to allocate the net proceeds, if any,
we receive in connection with securities offered pursuant to this prospectus for
any purpose. Pending application of the net proceeds as described above, we may
initially invest the net proceeds in short-term, investment-grade,
interest-bearing securities or apply them to the reduction of short-term
indebtedness.
PLAN OF
DISTRIBUTION
We may
offer securities under this prospectus from time to time pursuant to
underwritten public offerings, negotiated transactions, block trades or a
combination of these methods. We may sell the securities (1) through
underwriters or dealers, (2) through agents or (3) directly to one or
more purchasers, or through a combination of such methods. We may distribute the
securities from time to time in one or more transactions at:
•
a fixed
price or prices, which may be changed from time to time;
•
market
prices prevailing at the time of sale;
•
prices
related to the prevailing market prices; or
•
negotiated
prices.
We may
directly solicit offers to purchase the securities being offered by this
prospectus. We may also designate agents to solicit offers to purchase the
securities from time to time. We will name in a prospectus supplement any
underwriter or agent involved in the offer or sale of the
securities.
If we
utilize a dealer in the sale of the securities being offered by this prospectus,
we will sell the securities to the dealer, as principal. The dealer may then
resell the securities to the public at varying prices to be determined by the
dealer at the time of resale.
If we
utilize an underwriter in the sale of the securities being offered by this
prospectus, we will execute an underwriting agreement with the underwriter at
the time of sale, and we will provide the name of any underwriter in the
prospectus supplement which the underwriter will use to make resales of the
securities to the public. In connection with the sale of the securities, we, or
the purchasers of the securities for whom the underwriter may act as agent, may
compensate the underwriter in the form of underwriting discounts or commissions.
The underwriter may sell the securities to or through dealers, and the
underwriter may compensate those dealers in the form of discounts, concessions
or commissions.
With
respect to underwritten public offerings, negotiated transactions and block
trades, we will provide in the applicable prospectus supplement any compensation
we pay to underwriters, dealers or agents in connection with the offering of the
securities, and any discounts, concessions or commissions allowed by
underwriters to participating dealers. Underwriters, dealers and agents
participating in the distribution of the securities may be deemed to be
underwriters within the meaning of the Securities Act of 1933, as amended, or
the Securities Act, and any discounts and commissions received by them and any
profit realized by them on resale of the securities may be deemed to be
underwriting discounts and commissions. We may enter into agreements to
indemnify underwriters, dealers and agents against civil liabilities, including
liabilities under the Securities Act, or to contribute to payments they may be
required to make in respect thereof.
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If so
indicated in the applicable prospectus supplement, we will authorize
underwriters or other persons acting as our agents to solicit offers by certain
institutions to purchase securities from us pursuant to delayed delivery
contracts providing for payment and delivery on the date stated in the
prospectus supplement. Each contract will be for an amount not less than, and
the aggregate amount of securities sold pursuant to such contracts shall not be
less nor more than, the respective amounts stated in the prospectus supplement.
Institutions with whom the contracts, when authorized, may be made include
commercial and savings banks, insurance companies, pension funds, investment
companies, educational and charitable institutions and other institutions, but
shall in all cases be subject to our approval. Delayed delivery contracts will
not be subject to any conditions except that:
•
the
purchase by an institution of the securities covered under that contract shall
not at the time of delivery be prohibited under the laws of the jurisdiction to
which that institution is subject; and
•
if the
securities are also being sold to underwriters acting as principals for their
own account, the underwriters shall have purchased such securities not sold for
delayed delivery. The underwriters and other persons acting as our agents will
not have any responsibility in respect of the validity or performance of delayed
delivery contracts.
Shares of
our common stock sold pursuant to the registration statement of which this
prospectus is a part will be authorized for quotation and trading on the NYSE
Alternext or any securities market or other securities exchange of the
securities covered by the prospectus supplement. The applicable prospectus
supplement will contain information, where applicable, as to any other listing,
if any, on the NYSE Alternext or any securities market or other securities
exchange of the securities covered by the prospectus supplement. We can make no
assurance as to the liquidity of or the existence of trading markets for any of
the securities.
In order
to facilitate the offering of the securities, certain persons participating in
the offering may engage in transactions that stabilize, maintain or otherwise
affect the price of the securities. This may include over-allotments or short
sales of the securities, which involve the sale by persons participating in the
offering of more securities than we sold to them. In these circumstances, these
persons would cover such over-allotments or short positions by making purchases
in the open market or by exercising their over-allotment option. In addition,
these persons may stabilize or maintain the price of the securities by bidding
for or purchasing the applicable security in the open market or by imposing
penalty bids, whereby selling concessions allowed to dealers participating in
the offering may be reclaimed if the securities sold by them are repurchased in
connection with stabilization transactions. The effect of these transactions may
be to stabilize or maintain the market price of the securities at a level above
that which might otherwise prevail in the open market. These transactions may be
discontinued at any time.
The
underwriters, dealers and agents may engage in other transactions with us, or
perform other services for us, in the ordinary course of their
business.
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DESCRIPTION OF COMMON STOCK AND
PREFERRED STOCK
The
following description of our common stock and preferred stock, together with any
additional information we include in any applicable prospectus supplements,
summarizes the material terms and provisions of our common stock and the
preferred stock that we may offer under this prospectus. For the complete terms
of our common stock and preferred stock, please refer to our certificate of
incorporation, as amended, and amended and restated bylaws, which are exhibits
to the registration statement that includes this prospectus. The terms of our
common stock and preferred stock may also be affected by Delaware
law.
Authorized
Capital Stock
Under our
certificate of incorporation, as amended, our authorized capital stock consists
of 100,000,000 shares of common stock, $0.001 par value per share, and 6,000,000
shares of preferred stock, $0.001 par value per share, 5,000,000 of which are
designated as Series A preferred stock. As of December 1, 2009, we had
32,102,435 shares of common stock outstanding and 5,000,000 shares of
Series A preferred stock outstanding. We will describe the specific terms
of any common stock or preferred stock we may offer in more detail in a
prospectus supplement relating to the offering of shares of common stock or
preferred stock. If we so indicate in a prospectus supplement, the terms of any
common stock or preferred stock offered under that prospectus supplement may
differ from the terms described below.
Common
Stock
Holders
of common stock are entitled to one vote for each share held of record on all
matters submitted to a vote of the stockholders, and do not have cumulative
voting rights. Subject to preferences that may be applicable to any outstanding
shares of preferred stock, holders of common stock are entitled to receive
ratably such dividends, if any, as may be declared from time to time by our
board of directors out of funds legally available for dividend payments. All
shares of common stock outstanding as of the date of this prospectus and, upon
issuance and sale, all shares of common stock that we may offer pursuant to this
prospectus, will be fully paid and nonassessable. The holders of common stock
have no preferences or rights of conversion, exchange, pre-emption or other
subscription rights. There are no redemption or sinking fund provisions
applicable to the common stock. In the event of any liquidation, dissolution or
winding-up of our affairs, holders of common stock will be entitled to share
ratably in our assets that are remaining after payment or provision for payment
of all of our debts and obligations and after liquidation payments to holders of
outstanding shares of preferred stock, if any.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is Computershare Trust
Company, N.A.
NYSE
Alternext
Our
common stock is listed on the NYSE Alternext under the symbol "ILI." On
January 5, 2010, the last reported sale price of our common stock was $0.81
per share.
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Preferred
Stock
Series A
Preferred Stock
The
Series A preferred stock accrues dividends at the rate of 8% of the
original purchase price per year, payable only when, as and if declared by the
Board of Directors and are non-cumulative. To date, no dividends have been
declared on these shares. If we declare a distribution, with certain exceptions,
payable in securities of other persons, evidences of indebtedness issued by us
or other persons, assets (excluding cash dividends) or options or rights to
purchase any such securities or evidences of indebtedness, then, in each such
case the holders of the Series A preferred stock shall be entitled to a
proportionate share of any such distribution as though the holders of the
Series A preferred stock were the holders of the number of shares of our
common stock into which their respective shares of Series A preferred stock
are convertible as of the record date fixed for the determination of the holders
of our common stock entitled to receive such distribution.
In the
event of any liquidation, dissolution or winding up of the company, whether
voluntary or involuntary, the holders of the Series A preferred stock shall
be entitled to receive, prior and in preference to any distribution of any of
our assets or surplus funds to the holders of our common stock by reason of
their ownership thereof, the amount of two times the then-effective purchase
price per share, as adjusted for any stock dividends, combinations or splits
with respect to such shares, plus all declared but unpaid dividends on such
share for each share of Series A preferred stock then held by them. The
liquidation preference at September 30, 2009 was $18,000,000. After
receiving this amount, the holders of the Series A preferred stock shall
participate on an as-converted basis with the holders of common stock in any of
the remaining assets.
Each
share of Series A preferred stock is convertible at any time at the option
of the holder into a number of shares of our common stock determined by dividing
the then-effective purchase price ($1.80, and subject to further adjustment) by
the conversion price in effect on the date the certificate is surrendered for
conversion. As of September 30, 2009, the Series A preferred stock was
convertible into 28,160,200 shares of common stock reflecting a current
conversion price of $0.3196 per share.
Each
holder of Series A preferred stock is entitled to vote its shares of
Series A preferred stock on an as-converted basis with the holders of
common stock as a single class on all matters submitted to a vote of the
stockholders, except as otherwise required by applicable law.
Undesignated
Preferred Stock
Under the
terms of our certificate of incorporation, as amended, our board of directors is
authorized to issue up to 1,000,000 shares of preferred stock in one or more
series without stockholder approval. Our board of directors has the discretion
to determine the rights, preferences, privileges and restrictions, including
voting rights, dividend rights, conversion rights, redemption privileges and
liquidation preferences, of each series of preferred stock. Authorizing our
board of directors to issue preferred stock and determine its rights and
preferences has the effect of eliminating delays associated with a stockholder
vote on specific issuances.
If we
offer a specific series of preferred stock under this prospectus, we will
describe the terms of the preferred stock in the prospectus supplement for such
offering and will file a copy of the certificate establishing the terms of
the preferred stock with the SEC. To the extent required, this description will
include:
•
the title
and stated value;
•
the
number of shares offered, the liquidation preference per share and the purchase
price;
•
the
dividend rate(s), period(s) and/or payment date(s), or method(s) of calculation
for such dividends;
•
whether
dividends will be cumulative or non-cumulative and, if cumulative, the date from
which dividends will accumulate;
•
the
procedures for any auction and remarketing, if any;
•
the
provisions for a sinking fund, if any;
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•
the
provisions for redemption, if applicable;
•
any
listing of the preferred stock on any securities exchange or
market;
•
whether
the preferred stock will be convertible into our common stock, and, if
applicable, the conversion price (or how it will be calculated) and conversion
period;
•
whether
the preferred stock will be exchangeable into debt securities, and, if
applicable, the exchange price (or how it will be calculated) and exchange
period;
•
voting
rights, if any, of the preferred stock;
•
a
discussion of any material and/or special U.S. federal income tax considerations
applicable to the preferred stock;
•
the
relative ranking and preferences of the preferred stock as to dividend rights
and rights upon liquidation, dissolution or winding up of the affairs of
Interleukin Genetics; and
•
any
material limitations on issuance of any class or series of preferred stock
ranking senior to or on a parity with the series of preferred stock as to
dividend rights and rights upon liquidation, dissolution or winding up of
Interleukin Genetics.
Anti-Takeover
Provisions under Delaware law and our Delaware Certificate of Incorporation and
Bylaws
Our
certificate of incorporation, as amended, amended and restated bylaws and
provisions of Delaware law contain provisions that are intended to enhance the
likelihood of continuity and stability in the composition of the board of
directors and which may have the effect of delaying, deferring or preventing a
future takeover or change in control of our company unless such takeover or
change in control is approved by our board of directors.
These
provisions, summarized below, are expected to discourage coercive takeover
practices and inadequate takeover bids. These provisions are also designed to
encourage persons seeking to acquire control of us to first negotiate with our
board of directors. We believe that the benefits of increased protection of our
potential ability to negotiate with the proponent of an unfriendly or
unsolicited proposal to acquire or restructure us outweigh the disadvantages of
discouraging these proposals because negotiation of these proposals could result
in an improvement of their terms.
Delaware
Statutory Business Combinations Provision
We are
subject to the anti-takeover provisions of Section 203 of the Delaware
General Corporation Law. In general, Section 203 prohibits a publicly held
Delaware corporation from engaging in a "business combination" with an
"interested stockholder" for a period of three years after the date of the
transaction in which the person became an interested stockholder, unless the
business combination is, or the transaction in which the person became an
interested stockholder was, approved in a prescribed manner or another
prescribed exception applies. For purposes of Section 203, a "business
combination" is defined broadly to include a merger, asset sale or other
transaction resulting in a financial benefit to the interested stockholder, and,
subject to certain exceptions, an "interested stockholder" is a person who,
together with his or her affiliates and associates, owns (or within three years
prior, did own) 15% or more of the corporation's voting stock. The statute could
prohibit or delay mergers or other takeover or change in control attempts with
respect to us and, accordingly, may discourage attempts to acquire
us.
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Classified
Board of Directors; Removal of Directors for Cause
Our
certificate of incorporation and amended and restated bylaws provide for our
board of directors to be divided into three classes, as nearly equal in number
as possible, serving staggered terms. Approximately one-third of our board will
be elected each year. At each annual meeting of stockholders, directors elected
to succeed those directors whose terms expire will be elected for a three-year
term of office. All directors elected to our classified board of directors will
serve until the election and qualification of their respective successors or
their earlier resignation or removal. The board of directors is authorized to
create new directorships and to fill such positions so created and is permitted
to specify the class to which any such new position is assigned. The person
filling such position would serve for the term applicable to that class. The
board of directors (or its remaining members, even if less than a quorum) is
also empowered to fill vacancies on the board of directors occurring for any
reason for the remainder of the term of the class of directors in which the
vacancy occurred. Members of the board of directors may only be removed for
cause and only by the affirmative vote of a majority of our outstanding voting
stock. These provisions are likely to increase the time required for
stockholders to change the composition of the board of directors. For example,
in general, at least two annual meetings will be necessary for stockholders to
effect a change in a majority of the members of the board of directors. The
provision for a classified board could prevent a party who acquires control of a
majority of our outstanding common stock from obtaining control of our board of
directors until our second annual stockholders meeting following the date the
acquirer obtains the controlling stock interest. The classified board provision
could have the effect of discouraging a potential acquirer from making a tender
offer or otherwise attempting to obtain control of us and could increase the
likelihood that incumbent directors will retain their positions.
Advance
Notice Provisions for Stockholder Proposals and Stockholder Nominations of
Directors
Our
amended and restated bylaws provide that, for nominations to the board of
directors or for other business to be properly brought by a stockholder before a
meeting of stockholders, the stockholder must first have given timely notice of
the proposal in writing to our Secretary. For an annual meeting, a stockholder's
notice generally must be delivered not less than 60 days nor more than
90 days prior to the anniversary of the previous year's annual meeting.
Detailed requirements as to the form of the notice and information required in
the notice are specified in the amended and restated bylaws. If it is determined
that business was not properly brought before a meeting in accordance with our
restated bylaws, such business will not be conducted at the
meeting.
Special
Meetings of Stockholders
Special
meetings of the stockholders may be called only by the Chairman of the Board,
the Chief Executive Officer or our board of directors pursuant to a resolution
adopted by a majority of the directors then in office.
No
Stockholder Action by Written Consent
Our
certificate of incorporation, as amended, does not permit our stockholders to
act by written consent. As a result, any action to be effected by our
stockholders must be effected at a duly called annual or special meeting of the
stockholders.
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Super-Majority
Stockholder Vote Required for Certain Actions.
The
Delaware General Corporation Law provides generally that the affirmative vote of
a majority of the shares entitled to vote on any matter is required to amend a
corporation's certificate of incorporation or bylaws, unless the corporation's
certificate of incorporation or bylaws, as the case may be, requires a greater
percentage. Our certificate of incorporation, as amended, requires the
affirmative vote of the holders of at least 66
2
/
3
% of our outstanding voting
stock to amend or repeal certain provisions of our restated certificate of
incorporation. This 80% stockholder vote would be in addition to any separate
class vote that might be required pursuant to the terms of any preferred stock
that might then be outstanding. In addition, our amended and restated bylaws may
only be amended by (1) the affirmative vote of the holders of at least 66
2
/
3
% of our outstanding
voting stock or (2) the affirmative vote of not less than two-thirds of the
directors then in office.
Effects
of Authorized but Unissued Stock
We have
shares of common stock and preferred stock available for future issuance without
stockholder approval, subject to any limitations imposed by the listing
standards of the NYSE Alternext or any securities market or other securities
exchange our securities may be listed or traded on. We may utilize these
additional shares for a variety of corporate purposes including for future
public offerings to raise additional capital or facilitate corporate
acquisitions or for payment as a dividend on our capital stock. The existence of
unissued and unreserved common stock and preferred stock may enable our board of
directors to issue shares to persons friendly to current management or to issue
preferred stock with terms that could have the effect of making it more
difficult for a third party to acquire, or could discourage a third party from
seeking to acquire, a controlling interest in our company by means of a merger,
tender offer, proxy contest or otherwise. In addition, if we issue preferred
stock, the issuance could adversely affect the voting power of holders of common
stock and the likelihood that such holders will receive dividend payments and
payments upon liquidation.
Limitation
of Liability and Indemnification of Officers and Directors
Our
certificate of incorporation, as amended, and our amended and restated bylaws
limit the liability of our officers and directors to the fullest extent
permitted by the Delaware General Corporation Law and provide that we will
indemnify them to the fullest extent permitted by such law. We have also entered
into indemnification agreements with our current and former directors and
certain of our officers and key employees and expect to enter into a similar
agreement with any new directors, officers or key employees.
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DESCRIPTION OF DEBT
SECURITIES
The
following description, together with the additional information we include in
any applicable prospectus supplements, summarizes the material terms and
provisions of the debt securities that we may offer under this prospectus. While
the terms we have summarized below will apply generally to any future debt
securities we may offer pursuant to this prospectus, we will describe the
particular terms of any debt securities that we may offer in more detail in the
applicable prospectus supplement. If we indicate in a prospectus supplement, the
terms of any debt securities we offer under that prospectus supplement may
differ from the terms we describe below.
We may
sell from time to time, in one or more offerings under this prospectus, debt
securities, which may be senior or subordinated. We will issue any such senior
debt securities under a senior indenture that we will enter into with a trustee
to be named in the senior indenture. We will issue any such subordinated debt
securities under a subordinated indenture, which we will enter into with a
trustee to be named in the subordinated indenture. We have filed forms of these
documents as exhibits to the registration statement of which this prospectus is
a part. We use the term "indentures" to refer to both the senior indenture and
the subordinated indenture. The indentures will be qualified under the Trust
Indenture Act of 1939, as in effect on the date of the indenture. We use the
term "debenture trustee" to refer to either the trustee or under the senior
indenture or the trustee under the subordinated indenture, as
applicable.
The
following summaries of material provisions of the senior debt securities, the
subordinated debt securities and the indentures are subject to, and qualified in
their entirety by reference to, all the provisions of the indenture applicable
to a particular series of debt securities.
General
Each
indenture provides that debt securities may be issued from time to time in one
or more series and may be denominated and payable in foreign currencies or units
based on or relating to foreign currencies, including European Currency Units.
Neither indenture limits the amount of debt securities that may be issued
thereunder, and each indenture provides that the specific terms of any series of
debt securities shall be set forth in, or determined pursuant to, an authorizing
resolution and/or a supplemental indenture, if any, relating to such
series.
We will
describe in each prospectus supplement the following terms relating to a series
of debt securities:
•
the title
or designation;
•
the
aggregate principal amount and any limit on the amount that may be
issued;
•
the
currency or units based on or relating to currencies in which debt securities of
such series are denominated and the currency or units in which principal or
interest or both will or may be payable;
•
whether
we will issue the series of debt securities in global form, the terms of any
global securities and who the depositary will be;
•
the
maturity date and the date or dates on which principal will be
payable;
•
the
interest rate, which may be fixed or variable, or the method for determining the
rate and the date interest will begin to accrue, the date or dates interest will
be payable and the record dates for interest payment dates or the method for
determining such dates;
•
whether
or not the debt securities will be secured or unsecured, and the terms of any
secured debt;
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•
the terms
of the subordination of any series of subordinated debt;
•
the place
or places where payments will be payable;
•
our
right, if any, to defer payment of interest and the maximum length of any such
deferral period;
•
the date,
if any, after which, and the price at which, we may, at our option, redeem the
series of debt securities pursuant to any optional redemption
provisions;
•
the date,
if any, on which, and the price at which we are obligated, pursuant to any
mandatory sinking fund provisions or otherwise, to redeem, or at the holder's
option to purchase, the series of debt securities;
•
whether
the indenture will restrict our ability to pay dividends, or will require us to
maintain any asset ratios or reserves;
•
whether
we will be restricted from incurring any additional indebtedness;
•
a
discussion on any material or special United States federal income tax
considerations applicable to a series of debt securities;
•
the
denominations in which we will issue the series of debt securities, if other
than denominations of $1,000 and any integral multiple thereof; and
•
any other
specific terms, preferences, rights or limitations of, or restrictions on, the
debt securities.
We may
issue debt securities that provide for an amount less than their stated
principal amount to be due and payable upon declaration of acceleration of their
maturity pursuant to the terms of the indenture. We will provide you with
information on the federal income tax considerations and other special
considerations applicable to any of these debt securities in the applicable
prospectus supplement.
Conversion
or Exchange Rights
We will
set forth in the prospectus supplement the terms, if any, on which a series of
debt securities may be convertible into or exchangeable for our common stock or
our other securities. We will include provisions as to whether conversion or
exchange is mandatory, at the option of the holder or at our option. We may
include provisions pursuant to which the number of shares of our common stock or
our other securities that the holders of the series of debt securities receive
would be subject to adjustment.
Consolidation,
Merger or Sale; No Protection in Event of a Change of Control or Highly
Leveraged Transaction
The
indentures do not contain any covenant that restricts our ability to merge or
consolidate, or sell, convey, transfer or otherwise dispose of all or
substantially all of our assets. However, any successor to or acquirer of such
assets must assume all of our obligations under the indentures or the debt
securities, as appropriate.
Unless we
state otherwise in the applicable prospectus supplement, the debt securities
will not contain any provisions that may afford holders of the debt securities
protection in the event we have a change of control or in the event of a highly
leveraged transaction (whether or not such transaction results in a change of
control), which could adversely affect holders of debt
securities.
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Events
of Default Under the Indenture
The
following are events of default under the indentures with respect to any series
of debt securities that we may issue:
•
if we
fail to pay interest when due and our failure continues for 90 days and the
time for payment has not been extended or deferred;
•
if we
fail to pay the principal, or premium, if any, when due and the time for payment
has not been extended or delayed;
•
if we
fail to observe or perform any other covenant relating to such series contained
in the debt securities of such series or the applicable indentures, other than a
covenant specifically relating to and for the benefit of holders of another
series of debt securities, and our failure continues for 90 days after we
receive written notice from the debenture trustee or holders of not less than a
majority in aggregate principal amount of the outstanding debt securities of the
applicable series; and
•
if
specified events of bankruptcy, insolvency or reorganization occur as to
us.
No event
of default with respect to a particular series of debt securities (except as to
certain events of bankruptcy, insolvency or reorganization) necessarily
constitutes an event of default with respect to any other series of debt
securities. The occurrence of an event of default may constitute an event of
default under any bank credit agreements we may have in existence from time to
time. In addition, the occurrence of certain events of default or an
acceleration under the indenture may constitute an event of default under
certain of our other indebtedness outstanding from time to time.
If an
event of default with respect to debt securities of any series at the time
outstanding occurs and is continuing, then the trustee or the holders of not
less than a majority in principal amount of the outstanding debt securities of
that series may, by a notice in writing to us (and to the debenture trustee if
given by the holders), declare to be due and payable immediately the principal
(or, if the debt securities of that series are discount securities, that portion
of the principal amount as may be specified in the terms of that series) of and
premium and accrued and unpaid interest, if any, on all debt securities of that
series. Before a judgment or decree for payment of the money due has been
obtained with respect to debt securities of any series, the holders of a
majority in principal amount of the outstanding debt securities of that series
(or, at a meeting of holders of such series at which a quorum is present, the
holders of a majority in principal amount of the debt securities of such series
represented at such meeting) may rescind and annul the acceleration if all
events of default, other than the non-payment of accelerated principal, premium,
if any, and interest, if any, with respect to debt securities of that series,
have been cured or waived as provided in the applicable indenture (including
payments or deposits in respect of principal, premium or interest that had
become due other than as a result of such acceleration). We refer you to the
prospectus supplement relating to any series of debt securities that are
discount securities for the particular provisions relating to acceleration of a
portion of the principal amount of such discount securities upon the occurrence
of an event of default.
Subject
to the terms of the indentures, if an event of default under an indenture shall
occur and be continuing, the debenture trustee will be under no obligation to
exercise any of its rights or powers under such indenture at the request or
direction of any of the holders of the applicable series of debt securities,
unless such holders have offered the debenture trustee reasonable indemnity. The
holders of a majority in principal amount of the outstanding debt securities of
any series will have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the debenture trustee, or
exercising any trust or power conferred on the debenture trustee, with respect
to the debt securities of that series, provided that:
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•
the
direction so given by the holder is not in conflict with any law or the
applicable indenture; and
•
subject
to its duties under the Trust Indenture Act, the debenture trustee need not take
any action that might involve it in personal liability or might be unduly
prejudicial to the holders not involved in the proceeding.
A holder
of the debt securities of any series will only have the right to institute a
proceeding under the indentures or to appoint a receiver or trustee, or to seek
other remedies if:
•
the
holder previously has given written notice to the debenture trustee of a
continuing event of default with respect to that series;
•
the
holders of at least a majority in aggregate principal amount of the outstanding
debt securities of that series have made written request, and such holders have
offered reasonable indemnity to the debenture trustee to institute the
proceeding as trustee; and
•
the
debenture trustee does not institute the proceeding, and does not receive from
the holders of a majority in aggregate principal amount of the outstanding debt
securities of that series (or at a meeting of holders of such series at which a
quorum is present, the holders of a majority in principal amount of the debt
securities of such series represented at such meeting) other conflicting
directions within 60 days after the notice, request and offer.
These
limitations do not apply to a suit instituted by a holder of debt securities if
we default in the payment of the principal, premium, if any, or interest on, the
debt securities.
We will
periodically file statements with the applicable debenture trustee regarding our
compliance with specified covenants in the applicable indenture.
Modification
of Indenture; Waiver
The
debenture trustee and we may change the applicable indenture without the consent
of any holders with respect to specific matters, including:
•
to fix
any ambiguity, defect or inconsistency in the indenture; and
•
to change
anything that does not materially adversely affect the interests of any holder
of debt securities of any series issued pursuant to such indenture.
In
addition, under the indentures, the rights of holders of a series of debt
securities may be changed by us and the debenture trustee with the written
consent of the holders of at least a majority in aggregate principal amount of
the outstanding debt securities of each series (or, at a meeting of holders of
such series at which a quorum is present, the holders of a majority in principal
amount of the debt securities of such series represented at such meeting) that
is affected. However, the debenture trustee and we may make the following
changes only with the consent of each holder of any outstanding debt securities
affected:
•
extending
the fixed maturity of the series of debt securities;
•
reducing
the principal amount, reducing the rate of or extending the time of payment of
interest, or any premium payable upon the redemption of any debt
securities;
•
reducing
the principal amount of discount securities payable upon acceleration of
maturity;
•
making
the principal of or premium or interest on any debt security payable in currency
other than that stated in the debt security; or
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•
reducing
the percentage of debt securities, the holders of which are required to consent
to any amendment or waiver.
Except
for certain specified provisions, the holders of at least a majority in
principal amount of the outstanding debt securities of any series (or, at a
meeting of holders of such series at which a quorum is present, the holders of a
majority in principal amount of the debt securities of such series represented
at such meeting) may on behalf of the holders of all debt securities of that
series waive our compliance with provisions of the indenture. The holders of a
majority in principal amount of the outstanding debt securities of any series
may on behalf of the holders of all the debt securities of such series waive any
past default under the indenture with respect to that series and its
consequences, except a default in the payment of the principal of, premium or
any interest on any debt security of that series or in respect of a covenant or
provision, which cannot be modified or amended without the consent of the holder
of each outstanding debt security of the series affected;
provided, however,
that the
holders of a majority in principal amount of the outstanding debt securities of
any series may rescind an acceleration and its consequences, including any
related payment default that resulted from the acceleration.
Discharge
Each
indenture provides that we can elect to be discharged from our obligations with
respect to one or more series of debt securities, except for obligations
to:
•
register
the transfer or exchange of debt securities of the series;
•
replace
stolen, lost or mutilated debt securities of the series;
•
maintain
paying agencies;
•
hold
monies for payment in trust;
•
compensate
and indemnify the trustee; and
•
appoint
any successor trustee.
In order
to exercise our rights to be discharged with respect to a series, we must
deposit with the trustee money or government obligations sufficient to pay all
the principal of, the premium, if any, and interest on, the debt securities of
the series on the dates payments are due.
Form,
Exchange, and Transfer
We will
issue the debt securities of each series only in fully registered form without
coupons and, unless we otherwise specify in the applicable prospectus
supplement, in denominations of $1,000 and any integral multiple thereof. The
indentures provide that we may issue debt securities of a series in temporary or
permanent global form and as book-entry securities that will be deposited with,
or on behalf of, The Depository Trust Company or another depositary named by us
and identified in a prospectus supplement with respect to that
series.
At the
option of the holder, subject to the terms of the indentures and the limitations
applicable to global securities described in the applicable prospectus
supplement, the holder of the debt securities of any series can exchange the
debt securities for other debt securities of the same series, in any authorized
denomination and of like tenor and aggregate principal amount.
Subject
to the terms of the indentures and the limitations applicable to global
securities set forth in the applicable prospectus supplement, holders of the
debt securities may present the debt securities for exchange or for registration
of transfer, duly endorsed or with the form of transfer endorsed thereon duly
executed if so required by us or the security registrar, at the office of the
security registrar or at the office of any transfer agent designated by us for
this purpose. Unless otherwise provided in the debt securities that the holder
presents for transfer or exchange or in the applicable indenture, we will make
no service charge for any registration of transfer or exchange, but we may
require payment of any taxes or other governmental charges.
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We will
name in the applicable prospectus supplement the security registrar, and any
transfer agent in addition to the security registrar, that we initially
designate for any debt securities. We may at any time designate additional
transfer agents or rescind the designation of any transfer agent or approve a
change in the office through which any transfer agent acts, except that we will
be required to maintain a transfer agent in each place of payment for the debt
securities of each series.
If we
elect to redeem the debt securities of any series, we will not be required
to:
•
issue,
register the transfer of, or exchange any debt securities of that series during
a period beginning at the opening of business 15 days before the day of
mailing of a notice of redemption of any debt securities that may be selected
for redemption and ending at the close of business on the day of the mailing;
or
•
register
the transfer of or exchange any debt securities so selected for redemption, in
whole or in part, except the unredeemed portion of any debt securities we are
redeeming in part.
Information
Concerning the Debenture Trustee
The
debenture trustee, other than during the occurrence and continuance of an event
of default under the applicable indenture, undertakes to perform only those
duties as are specifically set forth in the applicable indenture. Upon an event
of default under an indenture, the debenture trustee under such indenture must
use the same degree of care as a prudent person would exercise or use in the
conduct of his or her own affairs. Subject to this provision, the debenture
trustee is under no obligation to exercise any of the powers given it by the
indentures at the request of any holder of debt securities unless it is offered
reasonable security and indemnity against the costs, expenses and liabilities
that it might incur.
Payment
and Paying Agents
Unless we
otherwise indicate in the applicable prospectus supplement, we will make payment
of the interest on any debt securities on any interest payment date to the
person in whose name the debt securities, or one or more predecessor securities,
are registered at the close of business on the regular record date for the
interest.
We will
pay principal of and any premium and interest on the debt securities of a
particular series at the office of the paying agents designated by us, except
that unless we otherwise indicate in the applicable prospectus supplement, will
we make interest payments by check which we will mail to the holder. Unless we
otherwise indicate in a prospectus supplement, we will designate the corporate
trust office of the debenture trustee in the City of New York as our sole paying
agent for payments with respect to debt securities of each series. We will name
in the applicable prospectus supplement any other paying agents that we
initially designate for the debt securities of a particular series. We will
maintain a paying agent in each place of payment for the debt securities of a
particular series.
All money
we pay to a paying agent or the debenture trustee for the payment of the
principal of or any premium or interest on any debt securities which remains
unclaimed at the end of two years after such principal, premium or interest has
become due and payable will be repaid to us, and the holder of the security
thereafter may look only to us for payment thereof.
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Governing
Law
The
indentures and the debt securities will be governed by and construed in
accordance with the laws of the State of New York, except to the extent that the
Trust Indenture Act is applicable.
Subordination
of Subordinated Debt Securities
The
obligations of the Company pursuant to any subordinated debt securities will be
unsecured and will be subordinate and junior in priority of payment to certain
of our other indebtedness to the extent described in a prospectus supplement.
The subordinated indenture does not limit the amount of senior indebtedness we
may incur. It also does not limit us from issuing any other secured or unsecured
debt.
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DESCRIPTION OF
WARRANTS
General
We may
issue warrants to purchase shares of our common stock, preferred stock and/or
debt securities in one or more series together with other securities or
separately, as described in the applicable prospectus supplement. Below is a
description of certain general terms and provisions of the warrants that we may
offer. Particular terms of the warrants will be described in the warrant
agreements and the prospectus supplement relating to the warrants.
The
applicable prospectus supplement will contain, where applicable, the following
terms of and other information relating to the warrants:
•
the
specific designation and aggregate number of, and the price at which we will
issue, the warrants;
•
the
currency or currency units in which the offering price, if any, and the exercise
price are payable;
•
the
designation, amount and terms of the securities purchasable upon exercise of the
warrants;
•
if
applicable, the exercise price for shares of our common stock and the number of
shares of common stock to be received upon exercise of the
warrants;
•
if
applicable, the exercise price for shares of our preferred stock, the number of
shares of preferred stock to be received upon exercise, and a description of
that series of our preferred stock;
•
if
applicable, the exercise price for our debt securities, the amount of debt
securities to be received upon exercise, and a description of that series of
debt securities;
•
the date
on which the right to exercise the warrants will begin and the date on which
that right will expire or, if you may not continuously exercise the warrants
throughout that period, the specific date or dates on which you may exercise the
warrants;
•
whether
the warrants will be issued in fully registered form or bearer form, in
definitive or global form or in any combination of these forms, although, in any
case, the form of a warrant included in a unit will correspond to the form of
the unit and of any security included in that unit;
•
any
applicable material U.S. federal income tax consequences;
•
the
identity of the warrant agent for the warrants and of any other depositaries,
execution or paying agents, transfer agents, registrars or other
agents;
•
the
proposed listing, if any, of the warrants or any securities purchasable upon
exercise of the warrants on any securities exchange;
•
if
applicable, the date from and after which the warrants and the common stock,
preferred stock and/or debt securities will be separately
transferable;
•
if
applicable, the minimum or maximum amount of the warrants that may be exercised
at any one time;
•
information
with respect to book-entry procedures, if any;
•
the
anti-dilution provisions of the warrants, if any;
•
any
redemption or call provisions;
•
whether
the warrants are to be sold separately or with other securities as parts of
units; and
•
any
additional terms of the warrants, including terms, procedures and limitations
relating to the exchange and exercise of the warrants.
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DESCRIPTION OF
RIGHTS
General
We may
issue rights to our stockholders to purchase shares of our common stock,
preferred stock or the other securities described in this prospectus. We may
offer rights separately or together with one or more additional rights, debt
securities, preferred stock, common stock, warrants or purchase contracts, or
any combination of those securities in the form of units, as described in the
applicable prospectus supplement. Each series of rights will be issued under a
separate rights agreement to be entered into between us and a bank or trust
company, as rights agent. The rights agent will act solely as our agent in
connection with the certificates relating to the rights of the series of
certificates and will not assume any obligation or relationship of agency or
trust for or with any holders of rights certificates or beneficial owners of
rights. The following description sets forth certain general terms and
provisions of the rights to which any prospectus supplement may relate. The
particular terms of the rights to which any prospectus supplement may relate and
the extent, if any, to which the general provisions may apply to the rights so
offered will be described in the applicable prospectus supplement. To the extent
that any particular terms of the rights, rights agreement or rights certificates
described in a prospectus supplement differ from any of the terms described
below, then the terms described below will be deemed to have been superseded by
that prospectus supplement. We encourage you to read the applicable rights
agreement and rights certificate for additional information before you decide
whether to purchase any of our rights.
We will
provide in a prospectus supplement the following terms of the rights being
issued:
•
the date
of determining the stockholders entitled to the rights
distribution;
•
the
aggregate number of shares of common stock, preferred stock or other securities
purchasable upon exercise of the rights;
•
the
exercise price;
•
the
aggregate number of rights issued;
•
the date,
if any, on and after which the rights will be separately
transferable;
•
the date
on which the right to exercise the rights will commence, and the date on which
the right to exercise the rights will expire;
•
the
method by which holders of rights will be entitled to exercise;
•
the
conditions to the completion of the offering, if any;
•
the
withdrawal, termination and cancellation rights, if any;
•
whether
the rights are transferrable;
•
whether
there are any backstop or standby purchaser or purchasers and the terms of their
commitment, if any;
•
whether
stockholders are entitled to oversubscription rights, if any;
•
any
applicable federal income tax considerations; and
•
any other
terms of the rights, including terms, procedures and limitations relating to the
distribution, exchange and exercise of the rights, as applicable.
Each
right will entitle the holder of rights to purchase for cash the principal
amount of shares of common stock, preferred stock or other securities at the
exercise price provided in the applicable prospectus supplement. Rights may be
exercised at any time up to the close of business on the expiration date for the
rights provided in the applicable prospectus supplement.
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Holders
may exercise rights as described in the applicable prospectus supplement. Upon
receipt of payment and the rights certificate properly completed and duly
executed at the corporate trust office of the rights agent or any other office
indicated in the prospectus supplement, we will, as soon as practicable, forward
the shares of common stock, preferred stock or other securities, as applicable,
purchasable upon exercise of the rights. If less than all of the rights issued
in any rights offering are exercised, we may offer any unsubscribed securities
directly to persons other than stockholders, to or through agents, underwriters
or dealers or through a combination of such methods, including pursuant to
standby arrangements, as described in the applicable prospectus
supplement.
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DESCRIPTION OF PURCHASE
CONTRACTS
We may
issue purchase contracts, including contracts obligating holders to purchase
from us, and for us to sell to holders, a specific or variable number of our
debt securities, shares of common stock, preferred stock, warrants or rights, or
securities of an entity unaffiliated with us, or any combination of the above,
at a future date or dates. Alternatively, the purchase contracts may obligate us
to purchase from holders, and obligate holders to sell to us, a specific or
variable number of our debt securities, shares of common stock, preferred stock,
warrants, rights or other property, or any combination of the above. The price
of the securities or other property subject to the purchase contracts may be
fixed at the time the purchase contracts are issued or may be determined by
reference to a specific formula described in the purchase contracts. We may
issue purchase contracts separately or as a part of units each consisting of a
purchase contract and one or more of our other securities described in this
prospectus or securities of third parties, including U.S. Treasury securities,
securing the holder's obligations under the purchase contract. The purchase
contracts may require us to make periodic payments to holders or vice versa and
the payments may be unsecured or pre-funded on some basis. The purchase
contracts may require holders to secure the holder's obligations in a manner
specified in the applicable prospectus supplement.
The
applicable prospectus supplement will describe the terms of any purchase
contracts in respect of which this prospectus is being delivered, including, to
the extent applicable, the following:
•
whether
the purchase contracts obligate the holder or us to purchase or sell, or both
purchase and sell, the securities subject to purchase under the purchase
contract, and the nature and amount of each of those securities, or the method
of determining those amounts;
•
whether
the purchase contracts are to be prepaid;
•
whether
the purchase contracts are to be settled by delivery, or by reference or linkage
to the value, performance or level of the securities subject to purchase under
the purchase contract;
•
any
acceleration, cancellation, termination or other provisions relating to the
settlement of the purchase contracts;
•
any
applicable federal income tax considerations; and
•
whether
the purchase contracts will be issued in fully registered or global
form.
The
preceding description sets forth certain general terms and provisions of the
purchase contracts to which any prospectus supplement may relate. The particular
terms of the purchase contracts to which any prospectus supplement may relate
and the extent, if any, to which the general provisions may apply to the
purchase contracts so offered will be described in the applicable prospectus
supplement. To the extent that any particular terms of the purchase contracts
described in a prospectus supplement differ from any of the terms described
above, then the terms described above will be deemed to have been superseded by
that prospectus supplement. We encourage you to read the applicable purchase
contract for additional information before you decide whether to purchase any of
our purchase contracts.
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DESCRIPTION OF
UNITS
The
following description, together with the additional information that we include
in any applicable prospectus supplements summarizes the material terms and
provisions of the units that we may offer under this prospectus. While the terms
we have summarized below will apply generally to any units that we may offer
under this prospectus, we will describe the particular terms of any series of
units in more detail in the applicable prospectus supplement. The terms of any
units offered under a prospectus supplement may differ from the terms described
below.
We will
file as exhibits to the registration statement of which this prospectus is a
part, or will incorporate by reference from reports that we file with the SEC,
the form of unit agreement that describes the terms of the series of units we
are offering, and any supplemental agreements, before the issuance of the
related series of units. The following summaries of material terms and
provisions of the units are subject to, and qualified in their entirety by
reference to, all the provisions of the unit agreement and any supplemental
agreements applicable to a particular series of units. We urge you to read the
applicable prospectus supplements related to the particular series of units that
we may offer under this prospectus, as well as any related free writing
prospectuses and the complete unit agreement and any supplemental agreements
that contain the terms of the units.
General
We may
issue units consisting of common stock, preferred stock, one or more debt
securities, warrants, rights or purchase contacts for the purchase of common
stock, preferred stock and/or debt securities in one or more series, in any
combination. Each unit will be issued so that the holder of the unit is also the
holder of each security included in the unit. Thus, the holder of a unit will
have the rights and obligations of a holder of each included security. The unit
agreement under which a unit is issued may provide that the securities included
in the unit may not be held or transferred separately, at any time or at any
time before a specified date.
We will
describe in the applicable prospectus supplement the terms of the series of
units being offered, including:
•
the
designation and terms of the units and of the securities comprising the units,
including whether and under what circumstances those securities may be held or
transferred separately
•
any
provisions of the governing unit agreement that differ from those described
below; and
•
any
provisions for the issuance, payment, settlement, transfer or exchange of the
units or of the securities comprising the units.
The
provisions described in this section, as well as those described under
"Description of Common Stock and Preferred Stock," "Description of Debt
Securities," "Description of Warrants," "Description of Rights" and "Description
of Purchase Contracts" will apply to each unit, as applicable, and to any common
stock, preferred stock, debt security, warrant, right or purchase contract
included in each unit, as applicable.
Issuance
in Series
We may
issue units in such amounts and in such numerous distinct series as we
determine.
Enforceability
of Rights by Holders of Units
Each unit
agent will act solely as our agent under the applicable unit agreement and will
not assume any obligation or relationship of agency or trust with any holder of
any unit. A single bank or trust company may act as unit agent for more than one
series of units. A unit agent will have no duty or responsibility in case of any
default by us under the applicable unit agreement or unit, including any duty or
responsibility to initiate any proceedings at law or otherwise, or to make any
demand upon us. Any holder of a unit may, without the consent of the related
unit agent or the holder of any other unit, enforce by appropriate legal action
its rights as holder under any security included in the unit.
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LEGAL MATTERS
Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Boston, Massachusetts, will pass
upon the validity of the issuance of the securities offered by this
prospectus.
EXPERTS
The
financial statements and schedule incorporated by reference in this prospectus
and elsewhere in the registration statement have been so incorporated by
reference in reliance upon the report of Grant Thornton LLP, independent
registered public accountants, upon the authority of said firm as experts in
accounting and auditing in giving said reports.
WHERE YOU CAN FIND MORE
INFORMATION
We are
subject to the reporting requirements of the Securities Exchange Act of 1934, as
amended, and file annual, quarterly and current reports, proxy statements and
other information with the SEC. You may read and copy these reports, proxy
statements and other information at the SEC's public reference facilities at
100 F Street, N.E., Room 1580, Washington, D.C. 20549. You can request
copies of these documents by writing to the SEC and paying a fee for the copying
cost. Please call the SEC at 1-800-SEC-0330 for more information about the
operation of the public reference facilities. SEC filings are also available at
the SEC's web site at
http://www.sec.gov.
Copies of
information filed by us with the SEC are also available on our website at
http://www.ilgenetics.com
under the heading "Investors."
Our
common stock is listed on the NYSE Alternext, and you can read and inspect our
filings at the offices of the Financial Industry Regulatory Authority at 1735 K
Street, Washington, D.C. 20006.
This
prospectus is only part of a registration statement on Form S-3 that we
have filed with the SEC under the Securities Act of 1933, as amended, and
therefore omits certain information contained in the registration statement. We
have also filed exhibits and schedules with the registration statement that are
excluded from this prospectus, and you should refer to the applicable exhibit or
schedule for a complete description of any statement referring to any contract
or other document. You may inspect a copy of the registration statement,
including the exhibits and schedules, without charge, at the public reference
room or obtain a copy from the SEC upon payment of the fees prescribed by the
SEC.
INCORPORATION OF DOCUMENTS BY
REFERENCE
The SEC
allows us to "incorporate by reference" information that we file with them.
Incorporation by reference allows us to disclose important information to you by
referring you to those other documents. The information incorporated by
reference is an important part of this prospectus, and information that we file
later with the SEC will automatically update and supersede this information. We
filed a registration statement on Form S-3 under the Securities Act of
1933, as amended, with the SEC with respect to the securities being offered
pursuant to this prospectus. This prospectus omits certain information contained
in the registration statement, as permitted by the SEC. You should refer to the
registration statement, including the exhibits, for further information about us
and the securities being offered pursuant to this prospectus. Statements in this
prospectus regarding the provisions of certain documents filed with, or
incorporated by reference in, the registration statement are not necessarily
complete and each statement is qualified in all respects by that reference.
Copies of all or any part of the registration statement, including the documents
incorporated by reference or the exhibits, may be obtained upon payment of the
prescribed rates at the offices of the SEC listed above in "Where You Can Find
More Information." The documents we are incorporating by reference are (unless
otherwise noted, the SEC file number for each of the documents listed below is
001-32715):
Table of
Contents
•
Our
annual report on Form 10-K for the fiscal year ended December 31,
2008, filed on March 25, 2009;
•
Our
quarterly reports on Form 10-Q for the quarters ended March 31, 2009,
June 30, 2009 and September 30, 2009, filed on May 14, 2009,
August 13, 2009 and November 12, 2009, respectively;
•
Our
current reports on Form 8-K filed on January 15, 2009, March 13,
2009, March 31, 2009, May 15, 2009 (with respect to Item 3.01
only), June 4, 2009, July 8, 2009 and October 30,
2009;
•
The
portions of our Definitive Proxy Statement on Schedule 14A that are deemed
"filed" with the SEC under the Securities Exchange Act of 1934, as amended,
filed on April 30, 2009;
•
The
description of our common stock contained in Item 1 of our Registration
Statement on Form 8-A dated December 27, 2005, including any amendment
or report filed for the purpose of updating such description;
•
all
reports and other documents subsequently filed by us pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934,
as amended, after the date of this prospectus and prior to the termination or
completion of the offering of securities under this prospectus shall be deemed
to be incorporated by reference in this prospectus and to be a part hereof from
the date of filing such reports and other documents.
Any
statement contained in this prospectus or in a document incorporated or deemed
to be incorporated by reference into this prospectus will be deemed to be
modified or superseded for purposes of this prospectus to the extent that a
statement contained in this prospectus or any other subsequently filed document
that is deemed to be incorporated by reference into this prospectus modifies or
supersedes the statement. Any statement so modified or superseded will not be
deemed, except as so modified or superseded, to constitute a part of this
prospectus.
You may
request, orally or in writing, a copy of any or all of the documents
incorporated herein by reference. These documents will be provided to you at no
cost, by contacting: Investor Relations, Interleukin Genetics, Inc., 135
Beaver Street, Waltham, Massachusetts 02452. Our telephone number is
(781) 398-0700.
You
should rely only on information contained in, or incorporated by reference into,
this prospectus and any prospectus supplement. We have not authorized anyone to
provide you with information different from that contained in this prospectus or
incorporated by reference in this prospectus. We are not making offers to sell
the securities in any jurisdiction in which such an offer or solicitation is not
authorized or in which the person making such offer or solicitation is not
qualified to do so or to anyone to whom it is unlawful to make such offer or
solicitation.
Table of
Contents
PROSPECTUS
INTERLEUKIN
GENETICS, INC.
$75,000,000
COMMON
STOCK
PREFERRED
STOCK
DEBT
SECURITIES
WARRANTS
RIGHTS
PURCHASE
CONTRACTS
UNITS
January 5,
2010
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