By Devika Patel
Knoxville, Tenn., June 29 - NovaDel Pharma Inc. said it entered into an equity financing agreement with Seaside 88, LP.
The agreement requires Seaside to buy 13 million common shares from the company in tranches settling every two weeks.
The agreement is structured in 26 tranches, each consisting of 500,000 shares.
At each closing, the total proceeds will be determined by applying a 13% discount to the volume weighted average price of NovaDel's stock for the 10 trading days preceding each closing.
If the volume weighted average trading price of the company's common stock is below $0.25, then the closing for that month will not occur.
NovaDel may discontinue the agreement between the 6th and 7th closings, based on the company's assessment of its financing needs at that time.
NovaDel, based in Flemington, N.J., develops drug delivery systems for prescription and over-the-counter drugs.
| Issuer: | NovaDel Pharma Inc.
|
| Issue: | Equity financing agreement
|
| Shares: | 13 million (500,000 shares every two weeks)
|
| Price: | 13% discount
|
| Warrants: | No
|
| Investor: | Seaside 88, LP
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| Pricing date: | June 29
|
| Stock symbol: | Amex: NVD
|
| Stock price: | $0.31 at close June 26
|
| Market capitalization: | $20.7 million
|
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