By Sheri Kasprzak
Atlanta, May 18 - NexMed Inc. said it plans to raise $4.45 million in a private placement.
The offering includes 445 shares of preferred stock at $10,000 each.
The preferreds are convertible into common shares at $1.36 each.
The investors will also receive warrants for 1,188,931 shares, exercisable at $1.43 each for four years.
The company may redeem the preferreds at the liquidation preference - $10,000 - or convert the preferreds quarterly, beginning Sept. 30, 2005, with up to $2 million in liquidation preference redeemable or convertible initially and up to $1 million per quarter thereafter.
NexMed may force the conversion of the preferreds if its stock exceeds the conversion price over a certain amount.
Based in Robbinsville, N.J., NexMed is a biopharmaceutical company focused on developing drugs used topically. The proceeds will be used for general corporate purposes.
| Issuer: | NexMed Inc.
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| Issue: | Preferred stock
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| Amount: | $4.45 million
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| Shares: | 445
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| Price: | $10,000
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| Conversion price: | $1.36
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| Call: | Redeemable at the liquidation preference beginning Sept. 30, 2005, with up to $2 million in liquidation preference initially redeemable and up to $1 million per quarter thereafter
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| Warrants: | For 1,188,931 shares
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| Warrant expiration: | Four years
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| Warrant strike price: | $1.43
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| Pricing date: | May 18
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| Stock price: | $1.21 at close May 17
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