By Sheri Kasprzak
New York, Aug. 19 - Vyteris Holdings (Nevada), Inc. said it plans to conduct a private placement of convertible debentures for $10 million.
The debentures, which will be sold to a limited number of accredited investors, bear interest at 8% annually, mature in three years and are convertible into a total of 4,166,667 common shares at $2.40 each.
The investors will also receive warrants for 2,083,333 shares, exercisable at $2.88 each, a 20% premium to the conversion price, for seven years.
The investors have the option to buy up to $5 million in additional principal of the debentures.
The proceeds, together with a $1 million convertible debenture the company sold earlier this month, will be used for general corporate purposes.
Vyteris, based in Fair Lawn, N.J., develops non-invasive drug delivery products.
| Issuer: | Vyteris Holdings (Nevada), Inc.
|
| Issue: | Convertible debentures
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| Amount: | $10 million
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| Maturity: | Three years
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
|
| Conversion price: | $2.40
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| Conversion ratio: | Into 4,166,667 common shares
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| Warrants: | For 2,083,333 shares
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| Warrant expiration: | Seven years
|
| Warrant strike price: | $2.88
|
| Pricing date: | Aug. 19
|
| Stock price: | $2.40 at close Aug. 19
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