By Sheri Kasprzak
New York, Feb. 13 - MacroChem Corp. said it has settled a private placement for $8.25 million, closing the second and final tranche for $5.75 million.
In the most recent tranche, the company issued 575 shares of 10% series C convertible preferred stock to a group of institutional investors led by SCO Capital Partners LLC and including Perceptive Life Sciences, DAC Fonds, Midsouth Investors Fund LP, Quogue Capital LLC and Iroquois Master Fund Ltd.
The first tranche closed on Dec. 23 for $2.5 million under the same terms.
The conversion price of the preferreds could not be determined by press time Monday evening.
SCO Securities LLC was the placement agent.
Since the first tranche closed, MacroChem carried out a 1-for-7 reverse stock split. On Feb. 9, the company completed another reverse stock split, this time 1-for-6.
In the final tranche, the investors received warrants for 5,480,961 shares, exercisable at $1.26 each for six years. In the total offering, the investors received warrants for 7,861,912 shares.
Based in Lexington, Mass., MacroChem is a biopharmaceutical company focused on developing transdermal drug delivery products.
| Issuer: | MacroChem Corp.
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| Issue: | Series C cumulative convertible preferred stock
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| Amount: | $8.25 million
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| Shares: | 825
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| Price: | $10,000
|
| Dividends: | 10%
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| Warrants: | For 7,861,912 shares
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| Warrant expiration: | Six years
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| Warrant strike price: | $1.26
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| Placement agent: | SCO Securities LLC
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| Investors: | SCO Capital Partners LLC (lead), Perceptive Life Sciences, DAC Fonds, Midsouth Investors Fund LP, Quogue Capital LLC and Iroquois Master Fund Ltd.
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| Settlement date: | Feb. 13
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| Stock symbol: | OTCBB: MACM
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| Stock price: | $1.62 at close Feb. 13
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