By Sheri Kasprzak
Atlanta, Nov. 4 - Elite Pharmaceuticals wrapped up a $6.6 million private placement Thursday, the third tranche of the offering.
The final tranche included the sale of 18,150 shares of series A preferred stock at $14.70 per share for a total of $266,805. In the last tranche, warrants for up to 181,500 shares were issued at $1.84 per share for five years.
In the first tranche, closed Oct. 12, the company issued 379,121 shares of series A preferred stock at $12.30 per share. Each investor received two common stock purchase warrants for each share of preferred stock, good for five years at a strike price of $1.54.
On Oct. 18, the company finished the second tranche for $1.67 million.
That tranche included the sale of 119,286 series A preferred shares at $14 per share. Warrants were also issued for five shares each for up to 1,192,860 shares of common stock at $1.75.
On Oct. 12, the company announced it had closed a $4.663 million private placement. That deal was done through the issuance of 379,121 shares of series A preferred stock at $12.30.
All told, the company sold 516,558 shares, which are convertible into 10 shares of common stock each, or a total of 5,165,580 shares of common stock.
The placement agent in the deal was Indigo Securities LLC.
Investors in the deal included S.A.C. Capital Associates, The Marlin Funds, Jess Morgan & Co., and Valor Capital Management LP.
Elite Pharmaceuticals is based in Northvale, N.J., and specializes in oral controlled-release products. The funds raised from the private placement will be used to develop the company's line of pain products.
| Issuer: | Elite Pharmaceuticals
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| Issue: | Series A preferred stock
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| Amount: | $266,805
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| Shares: | 18,150
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| Price: | $14.70
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| Warrants: | 181,500 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.84
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| Placement agent: | Indigo Securities LLC
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| Investors: | S.A.C. Capital Associates, The Marlin Funds, Jess Morgan & Co. and Valor Capital Management LP
|
| Settlement date: | Nov. 4
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| Stock price: | $1.70 at close Nov. 4
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