New Issue: Novelos raises $10 million in placement of convertible preferreds

By Devika Patel

Knoxville, Tenn., Feb. 12 - Novelos Therapeutics, Inc. said it took in $10 million in a private placement of series E convertible preferred shares with Purdue Pharma LP.

Novelos sold 200 preferreds at $50,000 apiece. The preferreds pay 9% dividends and are convertible into common shares at $0.65 per share.

Purdue also received warrants for 9,230,769 common shares, exercisable at $0.65 until Dec. 31, 2015.

Novelos is a Newton, Mass.-based biotechnology company

Issuer:	Novelos Therapeutics, Inc.
Issue:	Series E convertible preferred stock
Amount:	$10 million
Shares:	200
Price:	$50,000
Dividends:	9%
Conversion price:	$0.65
Warrants:	For 9,230,769 shares
Warrant expiration:	Dec. 31, 2015
Warrant strike price:	$0.65
Investor:	Purdue Pharma LP
Settlement date:	Feb. 12
Stock symbol:	OTCBB: NVLT
Stock price:	$0.50 at close Feb. 12
Market capitalization:	$23 million

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