Convertible debentures were sold with 100% five-year warrant coverage
By Devika Patel
Knoxville, Tenn., Feb. 6 - Novelos Therapeutics Inc. said it plans a $4 million non-brokered private placement of convertible debentures.
The 8% debentures convert to common stock at $0.50 per share, which is a 35.14% premium to the Feb. 5 closing share price of $0.37. The debentures mature in two years.
The investors also received 100% warrant coverage. The five-year warrants are each exercisable at $1.00, which is a 170.27% premium to the Feb. 5 closing share price.
Settlement is expected Feb. 7.
Proceeds will be used for operations.
Novelos is a Madison, Wis.-based biotechnology company.
| Issuer: | Novelos Therapeutics Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $4 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | $0.50
|
| Conversion premium: | 35.14%
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Agent: | Non-brokered
|
| Pricing date: | Feb. 6
|
| Settlement date: | Feb. 7
|
| Stock symbol: | OTCBB: NVLT
|
| Stock price: | $0.37 at close Feb. 5
|
| Market capitalization: | $22.84 million
|
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