By Sheri Kasprzak
New York, Aug. 8 - InNexus Biotechnology, Inc. said it plans to raise C$2.5 million from a private placement of convertible preferred stock.
The offering includes 25,000 preferreds at C$100 each sold to a group of U.S.-based institutional investors led by SDS Capital Group SPC Ltd.
The preferreds pay annual dividends at 8%, increasing to 12% in the third and succeeding years.
The preferreds are convertible for five years into units of 400 shares and 400 warrants.
The warrants provide for the purchase of an additional share at C$0.25 each for five years.
The preferreds may be redeemed at any time after the fifth anniversary at C$120 per share plus dividends.
The proceeds will be used for the development of the company's SuperAntibody and TransMab technologies.
Also, the company has arranged a convertible note offering for C$250,000 to fund operations pending the completion of the preferred offering.
The note bears interest at 10% for the first 90 days and 15% thereafter until maturity. The note matures in 180 days.
The investors may convert all or a portion of the note into common shares at 110% of the outstanding principal amount plus interest.
Separately, the company is offering 1.2 million units at C$0.25 each. The units include one share and one warrant. The warrants provide for the purchase of an additional share at C$0.30 each for two years.
Vancouver, B.C.-based InNexus is a drug development company.
| Issuer: | InNexus Biotechnology, Inc.
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| Issue: | Convertible preferred stock
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| Amount: | C$2.5 million
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| Shares: | 25,000
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| Price: | C$100
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| Conversion ratio: | Into units of 400 shares and 400 warrants
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| Dividends: | 8% for the first three years; 12% thereafter
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| Call: | Redeemable at any time after five years at C$120 per share plus dividends
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| Warrants: | For 400 shares per unit upon conversion
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| Warrant expiration: | Five years
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| Warrant strike price: | C$0.25
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| Investors: | SDS Capital Group SPC Ltd. (lead)
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| Pricing date: | Aug. 8
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| Stock price: | C$0.285 at close Aug. 5
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