New Issue: Novelos secures $9 million from private placement of shares, warrants

By Devika Patel

Knoxville, Tenn., Aug. 26 - Novelos Therapeutics, Inc. said it will raise $9 million in a private placement of shares. It has already taken in $3.5 million.

The company will sell 13,636,364 common shares to Purdue Pharma LP. Purdue also will receive warrants for approximately 4,772,728 common shares, exercisable at $0.66 until Dec. 31, 2015.

Purdue bought 5,303,030 shares and warrants for 1,856,062 shares in the first tranche.

Novelos is a Newton, Mass.-based biotechnology company.

Issuer:	Novelos Therapeutics, Inc.
Issue:	Common stock
Amount:	$9 million
Shares:	13,636,364
Warrants:	For approximately 4,772,728 shares
Warrant expiration:	Dec. 31, 2015
Warrant strike price:	$0.66
Investor:	Purdue Pharma LP
Pricing date:	Aug. 26
Settlement date:	Aug. 26 (for $3.5 million)
Stock symbol:	OTCBB: NVLT
Stock price:	$0.80 at close Aug. 25
Market capitalization:	$36.8 million

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