By Sheri Kasprzak
Atlanta, Nov. 4 - BioSphere Medical Inc. has received agreements from investors that will allow the company to raise $8 million in a private placement, the company said Thursday.
The company will sell shares of its series A convertible preferred stock and warrants for 400,000 shares of common stock, exercisable for five years, at $4 per share.
The preferreds may be converted into common shares at any time at $4. The closing price of the company's common stock was $2.64 on Nov. 3.
Martin Joyce, chief financial officer for BioSphere, said in an interview Thursday that the company has not decided exactly how many shares of the series A convertible preferred stock will be sold in the deal or at what price.
"We're not able to say," Joyce said. "We're still tinkering with it."
The deal is expected to close Nov. 8. At that time, Joyce said, additional details will also be released.
BioSphere, based in Rockland, Mass., is a medical device company. It plans to use the proceeds from the deal for general corporate purposes, including working capital and capital expenditures.
| Issuer: | BioSphere Medical Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $8 million
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| Shares: | To be determined
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| Price: | To be determined
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| Conversion price: | $4.00
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| Warrants: | For 400,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $4.00
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| Announcement date: | Nov. 3
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| Settlement date: | Nov. 8
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| Stock price: | $2.64 at close Nov. 3
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