Investors grant Genta additional time to complete reverse stock split

Company also gets stockholder approval for two reverse stock splits

By Devika Patel

Knoxville, Tenn., Dec. 5 - Genta Inc. negotiated agreements with investors participating in a $12.7 million private placement of units to amend the conditions of the deal, according to an 8-K filed Monday with the Securities and Exchange Commission. The offering priced on Sept. 12.

The Dec. 4 agreement allows the company more time to complete a reverse stock split. The split must be implemented by Dec. 15, and the second adjustment date for the conversion price of the notes being sold in the placement has been moved to Dec. 15.

The company subsequently was informed on Dec. 2 that the Financial Industry Regulatory Authority has decided that the company's request for the reverse stock split was deficient and would not be processed. The company said it intends to appeal this decision. If the stock split does not proceed, the company would be in default under its current debt.

Additionally, on Oct. 21, the company's stockholders approved up to two reverse stock splits of its common stock at exchange ratios up to 1 for 500 until Dec. 31, 2012.

Based in Berkeley Heights, N.J., Genta is a biopharmaceutical company focused on treatments for cancer.

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