By Sheri Kasprzak
New York, Nov. 16 - Neurochem Inc. said the $2.085 million over-allotment option on its previously announced private placement of senior convertible notes was exercised, bringing the total proceeds from the deal to $42.085 million.
The original offering, for $40 million, closed on Nov. 9.
FMRC Family Trust, Power Technology Investment Corp. and insiders of the company participated in the offering.
The 6% notes are due Nov. 15, 2026 and are convertible at a 20% premium to the then-current market price, for an initial conversion price of $19.72.
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 AA amyloidosis and Alzheimer's disease.
| Issuer: | Neurochem Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $42.085 million (includes greenshoe for $2.085 million)
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 20%
|
| Initial conversion price: | $19.72
|
| Warrants: | No
|
| Investors: | FMRC Family Trust, Power Technology Investment Corp., others
|
| Settlement date: | Nov. 9
|
| Greenshoe exercised: | Nov. 16
|
| Stock symbol: | Nasdaq: NRMX
|
| Stock price: | $16.80 at close Nov. 9
|
| Stock price: | $18.16 at close Nov. 15
|
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