Offering includes warrants; proceeds help meet working capital needs
By Devika Patel
Knoxville, Tenn., Feb. 8 - EpiCept Corp. said it plans a registered direct offering of stock. The deal is slated to raise $7.1 million.
The company will sell about 8.9 million common shares at $0.80 apiece. The price per share is a 5.88% premium to the Feb. 7 closing share price of $0.85.
The investors will also receive five-year warrants for approximately 3.6 million shares, which are each exercisable at $0.75. The strike price represents an 11.77% discount to the Feb. 7 closing share price.
Rodman & Renshaw, LLC is the agent.
Settlement is expected Feb. 10.
Proceeds will be used to meet working capital needs while the company seeks to close the key element of its previously announced financing plan and for general corporate purposes.
EpiCept, based in Tarrytown, N.Y., develops treatments for pain related to cancer as well as treatments for cancer.
| Issuer: | EpiCept Corp.
|
| Issue: | Common shares
|
| Amount: | $7.1 million
|
| Shares: | 8.9 million (approximate)
|
| Price: | $0.80
|
| Warrants: | For approximately 3.6 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.75
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| Agent: | Rodman & Renshaw, LLC
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| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 10
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| Stock symbol: | Nasdaq: EPCT
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| Stock price: | $0.85 at close Feb. 7
|
| Market capitalization: | $37.29 million
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