By Sheri Kasprzak
New York, April 13 - Novelos Therapeutics, Inc. is gearing up to complete a $15 million private placement of series B convertible preferred stock.
The company plans to sell to a group of institutional investors 1,500 shares of the preferreds at $10,000 each.
The 9% preferreds are convertible into common shares at $1.00 each.
The investors, which include Xmark Opportunity Fund and OrbiMed Advisors, will receive warrants for 7.5 million shares, exercisable at $1.25 each for five years.
The deal is set to close within seven to 10 days.
Rodman & Renshaw, LLC is the lead agent with Emerging Growth Equities Ltd. as the co-agent.
Located in Newton, Mass., Novelos develops treatments for cancer.
| Issuer: | Novelos Therapeutics, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $15 million
|
| Shares: | 1,500
|
| Price: | $10,000
|
| Dividend: | 9%
|
| Conversion price: | $1.00
|
| Warrants: | For 7.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Investors: | Xmark Opportunity Fund, OrbiMed Advisors, others
|
| Placement agents: | Rodman & Renshaw, LLC (lead), Emerging Growth Equities Ltd.
|
| Announcement date: | April 13
|
| Stock symbol: | OTCBB: NVLT
|
| Stock price: | $1.30 at close April 12
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
