By Sheri Kasprzak
Atlanta, June 1 - Vyteris Holdings Inc. has secured $500,000 from a private placement that could bring in up to $5 million for the company.
Spencer Trask Specialty Group LLC and its subsidiaries Spencer Trask Private Equity Fund I, Spenser Trask Private Equity Fund II, Spencer Trask Private Equity Accredited Fund III LLC and Spencer Trask Illumination Fund made the loans to Vyteris.
The promissory note bears interest at 11.5% and mature Nov. 15, 2005.
The investors also received warrants for 6,250 shares, exercisable at $4.00 each. If the loan is not repaid by July 27, the warrants will be exercisable into a maximum of 55,866 shares at $3.85 each. The warrants expire on July 27, 2009.
The company said it may borrow up to an additional $1.5 million under the same terms before July 27.
Vyteris and Spencer entered into loan agreement for up to $5 million in September 2004.
Based in Fair Lawn, N.J., Vyteris develops transdermal methods of drug delivery.
| Issuer: | Vyteris Holdings Inc.
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| Issue: | Promissory note
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| Amount: | $500,000
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| Maturity: | Nov. 15, 2005
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| Coupon: | 11.5%
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| Price: | Par
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| Yield: | 11.5%
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| Warrants: | For 6,250 shares (if loan is repaid by July 27); for 55,866 shares (if loan is not repaid by July 27)
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| Warrant expiration: | July 27, 2009
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| Warrant strike price: | $4.00 (if loan is repaid by July 27); $3.85 (if loan is not repaid by July 27)
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| Investors: | Spencer Trask Specialty Group, LLC; Spencer Trask Private Equity Fund I; Spenser Trask Private Equity Fund II; Spencer Trask Private Equity Accredited Fund III LLC and Spencer Trask Illumination Fund
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| Settlement date: | May 27
|
| Stock price: | $4.00 at close May 27
|
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