By Devika Patel
Knoxville, Tenn., Feb. 26 - Lotus Pharmaceuticals, Inc. raised $5 million in a private placement of series A convertible redeemable preferred stock, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 5,747,118 shares at $0.87 apiece. Investors also received warrants for 2,873,553 common shares, which are exercisable at $1.20 for five years.
The shares have an 8% coupon and are convertible into common shares. For a period of 90 days after Feb. 25, 2010, they may redeemed at the investor's option at $0.87 per share.
Lotus, based in Boca Raton, Fla., develops over-the-counter medications for distribution to the People's Republic of China.
| Issuer: | Lotus Pharmaceuticals, Inc.
|
| Issue: | Series A convertible redeemable preferred stock
|
| Amount: | $5 million
|
| Shares: | 5,747,118
|
| Price: | $0.87
|
| Coupon: | 8%
|
| Conversion price: | $0.87
|
| Warrants: | For 2,873,553 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.20
|
| Settlement date: | Feb. 25
|
| Stock symbol: | OTCBB: LTUS
|
| Stock price: | $0.81 at close Feb. 25
|
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