Offering includes warrants; proceeds help meet working capital needs
By Devika Patel
Knoxville, Tenn., March 29 - EpiCept Corp. said it negotiated a $1.07 million registered direct offering of 0% series B convertible preferred stock that will be conducted through Rodman & Renshaw, LLC.
The company will sell 1,065 preferreds at $1,000 apiece. The preferreds convert into about 6.3 million common shares.
The investors will also receive warrants for about 3.1 million shares, which are each exercisable at $0.17 for five years. The strike price represents a 29.17% discount to the March 28 closing share price of $0.24.
Settlement is expected on April 2.
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 B 0% convertible preferred stock
|
| Amount: | $1,065,000
|
| Preferreds: | 1,065
|
| Price: | $1,000
|
| Conversion ratio: | Into about 6.3 million common shares
|
| Warrants: | For about 3.1 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.17
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | March 29
|
| Settlement date: | April 2
|
| Stock symbol: | Pink Sheets: EPCT
|
| Stock price: | $0.24 at close March 28
|
| Market capitalization: | $15.86 million
|
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