By Sheri Kasprzak
New York, March 20 - Memory Pharmaceuticals, Inc. settled a $10 million private placement of a loan with Hercules Technology Growth Capital, Inc.
The loan is due in 30 equal monthly installments beginning the last business day of June 2008. The maturity of the loan may be extended to 33 months if Memory completes certain milestones by March 16, 2008.
The loan bears interest at Prime rate plus 320 basis points and may be prepaid at a 2.5% premium if prepaid before June 16, 2008 and at a 1.5% premium if prepaid after June 16, 2008 but before maturity.
Hercules also received warrants for 598,086 shares, exercisable at $2.09 each for five years.
Memory, based in Montvale, N.J., develops treatments for central nervous system disorders.
| Issuer: | Memory Pharmaceuticals, Inc.
|
| Issue: | Loan
|
| Amount: | $10 million
|
| Maturity: | 30 months
|
| Coupon: | Prime rate plus 320 bps
|
| Call: | May be prepaid at 2.5% premium to principal if prepaid before June 16, 2008; at 1.5% premium if paid after June 16, 2008 but before maturity
|
| Warrants: | For 598,086 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.09
|
| Investor: | Hercules Technology Growth Capital, Inc.
|
| Settlement date: | March 19
|
| Stock symbol: | Nasdaq: MEMY
|
| Stock price: | $2.21 at close March 19
|
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