6% note converts at $1.15 per common share and is due on Aug. 31, 2012
By Devika Patel
Knoxville, Tenn., Jan. 23 - EntreMed, Inc. said it arranged a $10 million private placement of convertible notes. Investors include IDG-Accel China Growth Fund II LP, Emerging Technology Partners, LLC and Dr. Tak W. Mak.
The 6% note matures Aug. 31, 2012, and automatically converts to common stock at $1.15 per share. The conversion price is a 27.67% discount to the Jan. 20 closing share price of $1.59 and is also the 10-day average closing sale price ending on Jan. 20.
The investors also will receive 20% warrant coverage. The warrants are exercisable at $1.40, an 11.95% discount to the Jan. 20 closing share price.
"The proceeds from the notes will allow the company to accelerate and expand its research and development activities and fund additional trials, initiatives and long-term strategic plans," the company's executive chairman Michael M. Tarnow said in a press release.
Based in Rockville, Md., EntreMed develops therapeutic treatments for cancer and inflammatory diseases.
| Issuer: | EntreMed, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $10 million
|
| Maturity: | Aug. 31, 2012
|
| Coupon: | 6%
|
| Conversion price: | $1.15
|
| Warrants: | 20% coverage
|
| Warrant strike price: | $1.40
|
| Investors: | IDG-Accel China Growth Fund II LP, Emerging Technology Partners, LLC and Dr. Tak W. Mak
|
| Pricing date: | Jan. 23
|
| Settlement date: | Jan. 27
|
| Stock symbol: | Nasdaq: ENMD
|
| Stock price: | $1.59 at close Jan. 20
|
| Market capitalization: | $18.48 million
|
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