Burrill assists; deal funds research, development, corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 13 - Novelos Therapeutics, Inc. said it priced a $5.5 million public offering of units. The deal was announced Nov. 20.
The company will sell 11 million units of one common share and 1.5 warrants at $0.50 per unit.
The class A warrants are exercisable for a half share at $0.50 for one year. The class B warrants are exercisable for a full share at $0.50 for five years. The strike price is a 31.51% discount the Feb. 12 closing share price of $0.73.
Burrill Securities LLC is the co-lead agent for the deal. Dawson James Securities, Inc. is a sub-agent in a co-lead capacity and Benchmark Co., LLC is a sub-agent.
Settlement is expected Feb. 19.
Proceeds will be used for research and development activities and for general corporate purposes.
Novelos is a Madison, Wis.-based pharmaceutical company developing novel drugs for the treatment and diagnosis of cancer.
| Issuer: | Novelos Therapeutics, Inc.
|
| Issue: | Units of one common share and 1.5 warrants
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| Amount: | $5.5 million
|
| Units: | 11 million
|
| Price: | $0.50
|
| Warrants: | 1.5 warrants per unit
|
| Warrant expiration: | One year, five years
|
| Warrant strike price: | $0.50
|
| Agents: | Burrill Securities LLC (co-lead), Dawson James Securities, Inc. (sub-agent in a co-lead capacity) and Benchmark Co., LLC (sub-agent)
|
| Announcement date: | Nov. 20
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Stock symbol: | OTCBB: NVLT
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| Stock price: | $0.73 at close Feb. 12
|
| Market capitalization: | $23.2 million
|
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