Company sells 2 million common shares at $1.00 apiece with warrants
By Devika Patel
Knoxville, Tenn., Nov. 5 - Novelos Therapeutics, Inc. said it settled a $2 million private placement of stock with an affiliate of the Renova Group.
The company sold 2 million common shares at $1.00 apiece, a 2.91% discount to the Nov. 2 closing share price of $1.03.
Investors also received warrants for 3 million shares. Of the warrants, 1 million are exercisable at $1.25 for five years, with the remainder exercisable at $1.00 for 90 days. The strike prices are a 21.36% premium and 2.91% discount to the Nov. 2 closing price.
Proceeds will be used for the build-out of an in-house clinical-stage manufacturing facility for I-124-CLR1404.
"We are very pleased to have a multi-billion dollar institutional investor of Renova's stature join our existing institutional and retail investors," president and chief executive officer Harry Palmin said in a press release. "Having demonstrated initial positive LIGHT imaging data in lung and brain cancer patients and awaiting initial LIGHT imaging data across nine other solid tumor indications starting early next year, the build-out of an in-house clinical-stage manufacturing facility for LIGHT is a key strategic initiative as we move toward larger phase 2 and pivotal LIGHT imaging trials.
"In the interim, we believe additional positive data will further establish proof-of-concept for LIGHT as a PET imaging agent in multiple cancer indications as well as guide selection of indications and trial designs for phase 2 clinical trials with I-131-CLR1404 (HOT).
"We already have an operational in-house clinical-stage manufacturing facility for HOT, our small-molecule, broad-spectrum, cancer-targeted molecular radiotherapeutic that delivers cytotoxic radiation directly and selectively to cancer cells and cancer stem cells," Palmin said.
Novelos is a Madison, Wis.-based biotechnology company.
| Issuer: | Novelos Therapeutics, Inc.
|
| Issue: | Common shares
|
| Amount: | $2 million
|
| Shares: | 2 million
|
| Price: | $1.00
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | Five years (for 1 million shares), 90 days (for 2 million shares)
|
| Warrant strike prices: | $1.25 (for 1 million shares), $1.00 (for 2 million shares)
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| Investor: | Renova Group
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| Settlement date: | Nov. 5
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| Stock symbol: | OTCBB: NVLT
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| Stock price: | $1.03 at close Nov. 2
|
| Market capitalization: | $44.53 million
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