MonoGen plans $8 million convertible offering as part of reverse merger

By Sheri Kasprzak

New York, July 13 - MonoGen, Inc. said it plans to raise $8 million in a private placement of convertible notes as part of a $20 million financing connected to MonoGen's merger with Oxbow Equities Corp.

The terms of the notes have not been determined yet, but the deal is slated to close Aug. 15.

Of the financing, $5 million of the proceeds will be used to repay loans held by Cardinal Health, and the remaining $3 million will be used to execute Oxbow's business plan following the merger.

Under the merger terms, Oxbow, which already owns 50% of MonoGen's outstanding stock, will purchase any outstanding stock, warrants and stock options of MonoGen it does not currently hold.

In the deal, Oxbow will issue 58.5 million new shares of Oxbow, 3.5 million new warrants of Oxbow and 6.4 million new Oxbow options for the remaining shares of MonoGen.

As part of the merger agreement, MonoGen will receive $20 million in common stock from Oxbow to execute its business plan.

Montreal-based Oxbow is a venture management company. MonoGen, based in Vernon Hills, Ill., is a medical device company focused on developing gynecological and other tests.

On Thursday, Oxbow's stock gained 2.27%, or a penny, to end at C$0.45 (Toronto: XBO).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.