By Devika Patel
Knoxville, Tenn., April 11 - Novelos Therapeutics, Inc. said it took in $5.68 million in a private placement of shares and warrants. The deal priced for $5 million on March 27.
Novelos sold 113.5 million series D convertible preferred shares at $50,000 apiece to a group of institutional investors. The company planned to sell 100 shares at that price. The shares pay 9% dividends and are convertible into common shares at $0.65 per share.
Investors also received five-year warrants for 4,365,381 common shares, exercisable at $0.65. Originally, the company planned to issue warrants for 3,846,151 shares.
The institutional investors are Xmark Opportunity Funds, OrbiMed Advisors, Knoll Capital and Hunt BioVentures.
Rodman & Renshaw, LLC, the agent, was paid a cash fee.
Novelos is a Newton, Mass.-based biotechnology company
| Issuer: | Novelos Therapeutics, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $5,675,000
|
| Shares: | 113.5
|
| Price: | $50,000
|
| Dividends: | 9%
|
| Conversion price: | $0.65
|
| Warrants: | For 4,365,381 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.65
|
| Agent: | Rodman & Renshaw, LLC
|
| Investors: | Xmark Opportunity Funds, OrbiMed Advisors, Knoll Capital, Hunt BioVentures
|
| Pricing date: | March 27
|
| Settlement date: | April 11
|
| Stock symbol: | OTCBB: NVLT
|
| Stock price: | $0.53 at close March 26
|
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