By Sheri Kasprzak
New York, Nov. 6 - Neurochem Inc. is gearing up to close a private placement of senior convertible notes for $40 million.
The 6% notes are due Nov. 15, 2026 and are convertible into common shares at a 20% premium to the then-current market price.
The offering is set to close Nov. 9.
The investors will have the option to buy another $2.085 million in principal of the notes for 30 days after closing.
FMRC Family Trust, Power Technology Investment Corp. and certain insiders of the company have agreed to buy $17.585 million of the notes.
Proceeds will be used for clinical development programs, research on new or existing products, capital expenditures and general corporate purposes.
Neurochem, based in Laval, Quebec, develops treatments for amyloidosis and Alzheimer's disease.
| Issuer: | Neurochem Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $40 million
|
| Option: | For another $2.085 million within 30 days
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 20%
|
| Warrants: | No
|
| Investors: | FMRC Family Trust, Power Technology Investment Corp., others
|
| Announcement date: | Nov. 6
|
| Settlement date: | Nov. 9
|
| Stock symbol: | Nasdaq: NRMX
|
| Stock price: | $16.48 at close Nov. 3
|
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