By Devika Patel
Knoxville, Tenn., March 18 - IGI Laboratories, Inc. announced that the press release issued on March 16 regarding a $6 million private placement contained typographical errors.
The deal consisted of 202.9 series B-1 convertible preferred shares and $4.78 million of secured convertible promissory notes, not 253 series B-1 convertible preferred shares and $4.48 million of notes, as previously reported.
The company also issued an unspecified number of warrants.
Each preferred is convertible into 14,634 common shares, for an implied common stock conversion price of $0.41 per share.
Upon stockholder approval of the transaction, the promissory notes will convert into 797.1 series B-1 convertible preferreds. If stockholder approval is not obtained, the promissory notes will become due and the warrants will become exercisable for 797.1 preferreds at $6,000.00 per preferred.
Rockport Venture Securities, LLC was the agent.
Proceeds will be used to support pharmaceutical product development efforts, as well as other general corporate purposes.
IGI is a pharmaceutical company based in Hillside, N.J.
| Issuer: | IGI Laboratories, Inc.
|
| Issue: | Series B-1 convertible preferred stock, secured convertible promissory notes
|
| Amount: | $6 million
|
| Warrants: | Yes (for 797.1 preferreds, but exercisable only under certain conditions)
|
| Warrant strike price: | $6,000.00
|
| Agent: | Rockport Venture Securities, LLC
|
| Settlement date: | March 16
|
| Stock symbol: | Amex: IG
|
| Stock price: | $0.58 at close March 13
|
| Market capitalization: | $10.1 million
|
|
|
| Convertible preferred stock
|
| Amount: | $1,217,400
|
| Shares: | 202.9
|
| Conversion price: | $0.41
|
| Conversion ratio: | Into 14,634 shares
|
|
|
| Convertible promissory notes
|
| Amount: | $4,782,600
|
| Conversion ratio: | Into 797.1 series B-1 convertible preferred shares
|
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