By Sheri Kasprzak
New York, Oct. 3 - Novelos Therapeutics, Inc. said it wrapped a $3 million convertible preferreds offering.
The company sold 3,000 shares of series A cumulative convertible preferred stock at $1,000 apiece to three institutional investors.
The 8% preferreds are convertible into common shares at $1.65 each. The dividend rate increases to 20% per year after the second anniversary of closing.
The investors also received warrants for half of the preferreds purchased. The warrants are exercisable at $2.00 each for five years.
Novelos has the option to redeem the preferreds at 120% of face value plus dividends.
Upon completion of the offering, Novelos had 27,818,699 outstanding common shares.
Based in Newton, Mass., Novelos is a biotechnology company focused on treatments for cancer and hepatitis C, among other diseases.
| Issuer: | Novelos Therapeutics, Inc.
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| Issue: | Series A cumulative convertible preferred stock
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| Amount: | $3 million
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| Shares: | 3,000
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| Price: | $1,000
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| Dividends: | 8%
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| Conversion price: | $1.65
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| Warrants: | For half of the preferreds purchased
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.00
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| Settlement date: | Sept. 30
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| Stock price: | $3.50 at close Sept. 30
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