By Sheri Kasprzak
New York, Nov. 17 - Neuro-Hitech, Inc. intends to raise $3.1 million in a private placement of its stock as part of its merger with QA Acquisition Corp.
The company plans to sell up to 604,878 shares in the deal at a price equal to the greater of $5.125 each or a 20% discount to the average market price for the 20 trading days before the completion of the merger.
The investors will receive warrants for 302,439 shares, exercisable at $7.00 each.
Under the merger terms, Neuro-Hitech will issue 1.8 million shares, 700,000 warrants exercisable at $13.00 each and 700,000 warrants exercisable at $18.00 each for all of the outstanding stock of QA Acquisition.
New York-based Neuro-Hitech develops and commercializes treatments for Alzheimer's disease and other degenerative neurological disorders.
| Issuer: | Neuro-Hitech, Inc.
|
| Issue: | Stock
|
| Amount: | $3.1 million
|
| Shares: | 604,878
|
| Price: | The greater of $5.125 or 20% discount to the average market price for the 20 trading days before merger closes
|
| Warrants: | For 302,439 shares
|
| Warrant strike price: | $7.00
|
| Pricing date: | Nov. 17
|
| Stock symbol: | OTCBB: NHPI
|
| Stock price: | $6.00 at close Nov. 17
|
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