Company sells notes at $888.88 per $1,000 of principal with warrants
By Devika Patel
Knoxville, Tenn., Jan. 31 - Radient Pharmaceuticals Corp. said it plans a private placement of convertible original issue discount notes. The deal will raise $8.4 million, and each buyer will pay $888.88 for each $1,000 of notes.
The notes mature in 11 months and are convertible into common shares at an initial conversion price of $0.60. The conversion price is a 10.45% discount to the Jan. 28 closing share price of $0.67.
Each of the investors also received two five-year warrants. The series A warrants are initially exercisable at $0.67 per share, which is identical to the Jan. 28 closing share price, and the series B warrants are initially exercisable at $0.8175 per share, a 22.01% premium to that price.
Proceeds will be used for general corporate purposes, including activities related to the long-term commercialization of RPC's Onko-Sure in vitro diagnostic cancer test.
Radient is a Tustin, Calif., pharmaceutical company.
| Issuer: | Radient Pharmaceuticals Corp.
|
| Issue: | Convertible original issue discount notes
|
| Amount: | $8.4 million
|
| Maturity: | 11 months
|
| Price: | $888.88 per $1,000 of notes
|
| Conversion price: | $0.60
|
| Warrants: | Two per investor
|
| Warrant expiration: | Five years
|
| Warrant strike prices: | $0.67 (series A), $0.8175 (series B)
|
| Pricing date: | Jan. 31
|
| Stock symbol: | NYSE: RPC
|
| Stock price: | $0.67 at close Jan. 28
|
| Market capitalization: | $22.69 million
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