Brokered financing will be underwritten by Rodman & Renshaw
By Devika Patel
Knoxville, Tenn., Dec. 2 - Novelos Therapeutics, Inc. revised a public offering of units to raise $6.05 million in a prospectus supplement filed Friday with the Securities and Exchange Commission. There is a $907,350 greenshoe for the deal, which priced as a $5.9 million offering on Thursday.
The company will now sell 10,081,667 units of one common share and one warrant at $0.60 per unit.
The whole warrants are each exercisable at $0.60 for five years. The strike price reflects a 23.08% discount to the Nov. 30 closing share price of $0.78.
Rodman & Renshaw, LLC is the underwriter.
Settlement is expected Dec. 6.
Proceeds will be used for research and development activities and general corporate purposes, including capital expenditures, working capital, and, potentially, acquisition activities.
Novelos is a Newton, Mass.-based pharmaceutical company developing drugs to treat and diagnose cancer.
| Issuer: | Novelos Therapeutics, Inc.
|
| Issue: | Units of one common share and a warrant
|
| Amount: | $6,049,000
|
| Greenshoe: | $907,350
|
| Units: | 10,081,667
|
| Price: | $0.60
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
|
| Underwriter: | Rodman & Renshaw, LLC
|
| Pricing date: | Dec. 1
|
| Revised: | Dec. 2
|
| Settlement date: | Dec. 6
|
| Stock symbol: | OTCBB: NVLT
|
| Stock price: | $0.78 at close Nov. 30
|
| Market capitalization: | $16.1 million
|
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