By Sheri Kasprzak
Atlanta, March 4 - Matritech Inc. said it has closed a private placement for $12.55 million.
The company sold 1,426,124 shares of series A convertible preferred stock at $8.80 each.
Each preferred is convertible into 10 common shares.
The investors also received warrants for 4,991,382 shares at $1.47 each for five years.
The company has closed the first portion of the private placement for $5.9 million. The remaining $6.65 million portion of the deal is subject to shareholder approval.
The deal sparked anti-dilution provisions in Matritech's 7.5% convertible debentures due March 31, 2006 and in the warrants issued with the debentures. As a result, the debentures are now convertible into an additional 869,623 shares and the warrants may be exercised at $0.88 each.
Based in Newton, Mass., Matritech develops proteomics technology for a variety of cancers. The proceeds from the latest private placement will be used for research and development, working capital and general corporate purposes.
| Issuer: | Matritech Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $12.55 million
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| Shares: | 1,426,124
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| Price: | $8.80
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| Conversion ratio: | 10
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| Warrants: | For 4,991,382 shares
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| Warrant expiration: | Five years
|
| Warrant strike price: | $1.47
|
| Settlement date: | March 4
|
| Stock price: | $1.28 at close March 4
|
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