Warrants for 625,000 shares included; preferreds accrue 8% dividends
By Devika Patel
Knoxville, Tenn., May 12 - Telik Inc. arranged a $2.5 million private placement of 8% series B convertible preferred stock on May 12, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company will sell 1.25 million preferreds at $2.00 apiece. The preferreds may be converted into common stock.
The preferreds will be sold with warrants for 625,000 common shares. The warrants are each exercisable at $3.33 for five years. The strike price is a 154.2% premium to the May 9 closing share price of $1.31.
Settlement is expected on May 13.
Telik is a Palo Alto, Calif., biopharmaceutical company specializing in novel small molecule drugs.
| Issuer: | Telik Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $2.5 million
|
| Preferreds: | 1.25 million
|
| Price: | $2.00
|
| Dividends: | 8%
|
| Warrants: | For 625,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.33
|
| Pricing date: | May 12
|
| Settlement date: | May 13
|
| Stock symbol: | Nasdaq: TELK
|
| Stock price: | $1.31 at close May 9
|
| Market capitalization: | $5.73 million
|
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