By Sheri Kasprzak
New York, Oct. 27 - Forbes Medi-Tech Inc. said it has wrapped a $6 million private placement of series B convertible preferred stock.
The preferreds are initially convertible into 3,636,363 common shares at $1.65 each and mature on Oct. 27, 2008.
At maturity, Forbes Medi-Tech may redeem the preferreds at the issue price or convert the preferreds into common shares at 90% of the maturity market price.
The investors in the offering received warrants for 1,818,182 shares, exercisable at $2.06 each for five years.
Merriman Curhan Ford & Co. was the placement agent.
Proceeds will be used for pharmaceutical research and for operational purposes.
Based in Vancouver, B.C., Forbes Medi-Tech is focused on the research, development and commercialization of treatments for cardiovascular disease.
| Issuer: | Forbes Medi-Tech Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $6 million
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| Maturity: | Oct. 27, 2008
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| Conversion price: | $1.65
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| Conversion ratio: | 3,636,363
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| Payout at maturity: | May be redeemed at maturity at the issue price or converted into common shares at 90% of the maturity market price
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| Warrants: | For 1,818,182 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.06
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| Placement agent: | Merriman Curhan Ford & Co.
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| Settlement date: | Oct. 27
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| Stock price: | $1.98 at close Oct. 26
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