By Devika Patel
Knoxville, Tenn., July 1 - NexMed, Inc. announced it has settled a private placement of convertible notes, raising $5.75 million.
The 7% notes were purchased by accounts managed by Tail Wind Advisory and Management Ltd.
They mature on Dec. 31, 2011. They are secured by a mortgage on NexMed's manufacturing facility in East Windsor, N.J.
Of the notes, $4.75 million are convertible into common shares at $2.00 per share. The remaining $1 million are convertible into common shares at $1.75 per share.
Interest is payable, at NexMed's option, in cash or, with certain exceptions, in common shares at a price equal to 95% of a five-day weighted average of the common stock's market price prior to the time of payment.
Proceeds will be used to pay off $3 million in debt, for working capital and for general corporate purposes.
Based in East Windsor, N.J., NexMed develops treatments for nail fungus, sexual disorders and other ailments.
| Issuer: | NexMed, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $5.75 million
|
| Maturity: | Dec. 31, 2011
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $2.00 (for $4.75 million), $1.75 (for $1 million)
|
| Warrants: | No
|
| Settlement date: | July 1
|
| Stock symbol: | Nasdaq: NEXM
|
| Stock price: | $1.30 at close June 30
|
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