Lpath Therapeutics will conduct private placement of at least $4 million as part of merger

By Sheri Kasprzak

New York, Oct. 28 - Lpath Therapeutics, Inc. will complete a private placement for a minimum of $4 million as a condition of its merger with Neighborhood Connections, Inc.

Though the terms of the offering have not yet been determined, a form 10-QSB that Neighborhood Connections filed Friday with the Securities and Exchange Commission said the offering will be concluded no later than Nov. 30. Lpath had been given a Sept. 30 deadline to complete the private placement but was granted an extension.

Under the terms of the merger, each outstanding common share of Lpath will be converted into one class A common share of Neighborhood Connections. Before closing, Neighborhood Connections will repurchase 4.92 million shares held by its largest shareholder for $10,000. This shareholder will retain 80,000 class A common shares.

"If the funding does not take place by the deadline [Nov. 30], the agreement will terminate," according to the report filed with the SEC. "There are no assurances that Lpath will be able to raise the minimum funding requirements."

Based in San Diego, Lpath is a biopharmaceutical company focused on treatments for cardiovascular disorders, cancer and other disorders.

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