Offering includes warrants; proceeds help meet working capital needs
By Devika Patel
Knoxville, Tenn., Feb. 9 - EpiCept Corp. said it plans a $2 million registered direct offering of series A 0% convertible preferred stock that will be conducted through Rodman & Renshaw, LLC.
The company will sell 2,000 preferreds at $1,000 apiece. The preferreds convert into 10 million common shares.
The investors will also receive warrants for 5 million shares, which are each exercisable at $0.20 for five years. The strike price represents a 25.93% discount to the Feb. 8 closing share price of $0.27.
Settlement is expected Feb. 13.
Proceeds will be used to meet working capital needs 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: | Series A 0% convertible preferred stock
|
| Amount: | $2 million
|
| Preferreds: | 2,000
|
| Price: | $1,000
|
| Conversion ratio: | Into 10 million common shares
|
| Warrants: | For 5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.20
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| Agent: | Rodman & Renshaw, LLC
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| Pricing date: | Feb. 9
|
| Settlement date: | Feb. 13
|
| Stock symbol: | Pink Sheets: EPCT
|
| Stock price: | $0.27 at close Feb. 8
|
| Market capitalization: | $18.46 million
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