By Sheri Kasprzak
New York, March 16 - Elite Pharmaceuticals, Inc. said it has closed a $10 million private placement of series B convertible preferred stock.
The company sold 10,000 shares of the preferreds to a group of institutional and other investors.
The preferreds are initially convertible into 4,444,444 common shares at $2.25 each.
The conversion price is equal to the company's closing stock price on March 15.
The investors will receive 2,222,222 warrants. Half the warrants are exercisable at $2.75 each for five years and half are exercisable at $3.25 each for five years.
Indigo Securities, LLC was the placement agent.
Proceeds will be used to develop the company's portfolio of pain products.
Elite, based in Northvale, N.J., is a pharmaceutical company focused on developing oral controlled-release products.
Issuer: | Elite Pharmaceuticals, Inc.
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Issue: | Series B convertible preferred stock
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Amount: | $10 million
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Shares: | 10,000
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Price: | $1,000
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Conversion price: | $2.25
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Conversion ratio: | Into 4,444,444 common shares
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Warrants: | 2,222,222
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Warrant expiration: | Five years
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Warrant strike price: | $2.75 for half, $3.25 for half
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Placement agent: | Indigo Securities, LLC
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Settlement date: | March 16
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Stock symbol: | Amex: ELI
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Stock price: | $2.25 at close March 15
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