Securities are accompanied by warrants for 50.01 million common shares
By Devika Patel
Knoxville, Tenn., Feb. 15 - NovaDel Pharma Inc. completed a private placement of its series A convertible preferred stock on Feb. 14, according to an 8-K filed Tuesday with the Securities and Exchange Commission. Roth Capital Partners, LLC was the agent for the $1.67 million deal.
The company sold 1,667 preferreds at $1,000.00 apiece with an original discount of 4%. The preferreds convert into 16.67 million common shares at an initial conversion price of $0.10 per share. The conversion price reflects a 44.44% discount to the closing share price of $0.18 on Feb. 11.
The preferreds have an automatic conversion feature which goes into effect after March 17.
Investors also received warrants for 33.34 million common shares, exercisable at $0.15 for five years and warrants for 16.67 million common shares, exercisable at $0.10 for one year. The strike prices are 16.67% and 44.44% discounts to the Feb. 11 closing share price.
NovaDel, based in Flemington, N.J., develops drug delivery systems for prescription and over-the-counter drugs.
| Issuer: | NovaDel Pharma Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $1,667,000
|
| Shares: | 1,667
|
| Price: | $1,000.00, 4% discount
|
| Conversion price: | $0.10
|
| Conversion ratio: | Into 16.67 million common shares
|
| Call: | After March 17, 2011
|
| Warrants: | For 50.01 million shares
|
| Warrant expiration: | Five years (for 33.34 million shares), one year (for 16.67 million shares)
|
| Warrant strike price: | $0.15 (for 33.34 million shares), $0.10 (for 16.67 million shares)
|
| Agent: | Roth Capital Partners, LLC
|
| Settlement date: | Feb. 14
|
| Stock symbol: | OTCBB: NVDL
|
| Stock price: | $0.19 at close Feb. 14
|
| Market capitalization: | $11.56 million
|
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