By LLuvia Mares
New York, Aug. 24 - Carrington Laboratories, Inc. announced Friday it settled an $8 million private placement of convertible debentures and common stock warrants.
The first tranche of debentures was for $4.4 million with a conversion price of $2.01 per share. The transaction closed April 26.
The second tranche for $3.6 million is convertible at $0.80 per share.
The debentures bear interest at 10% per year.
Carrington also issued warrants for 4,543,714 shares of the company's stock at $0.80 per share at the second closing.
Warrants issued at the first closing are exercisable at $2.01 each.
The warrants are not exercisable until Oct. 25 and have a seven-year term.
If all the warrants are exercised, the company will raise an additional $6 million.
Proceeds will be used for financing to further the development of the company's DelSite subsidiary's unique drug and vaccine delivery technologies and for general corporate purposes.
Irving, Tex.-based Carrington Laboratories is a research-based biopharmaceutical specializing in using naturally-occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care.
Issuer: Carrington Laboratories, Inc.
Issue: Convertible debentures
Amount: $8 million
| Coupon: | 10%
|
| Conversion price: | First tranche: $2.01, second tranche: $0.80
|
| Warrants: | For 4,543,714 shares (second closing)
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $2.01 for first closing warrants, $0.80 for second closing warrants
|
| Announcement date: | Aug. 24
|
| Stock symbol: | Nasdaq: CARN
|
| Stock price: | $0.61 at close Aug. 23
|
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