By Sheri Kasprzak
New York, Nov. 13 - Zila, Inc. is preparing to close a private placement of stock and convertible notes for $40 million.
The company secured agreements from mostly existing accredited investors for 9.1 million shares at $1.75 each, a $12,075,000 short-term unsecured convertible note and a $12 million senior secured convertible note.
The shares include warrants for 4.37 million shares, exercisable at $2.21 each through Nov. 9, 2011. The warrants become exercisable on May 10, 2007.
The $12,075,000 note due May 2007 becomes convertible into common shares at $1.75 each upon shareholder approval. The 12% notes include warrants for 1.03 million shares, exercisable at $2.21 each through Nov. 9, 2011. Those warrants also become exercisable May 10, 2007. Upon shareholder approval, the investors may receive warrants for another 3.1 million shares.
The $12 million of convertible notes bear interest at 6% annually, are due in three years and are convertible into common shares at $2.20 each. The notes include warrants for 1.91 million shares, exercisable at $2.21 each through Nov. 9, 2011. The notes become exercisable May 10, 2007.
Proceeds from the shares will be used for the completion of an acquisition and for working capital.
Phoenix-based Zila is a cancer diagnostic company focused on developing technologies to detect oral cancer.
Stock
| Issuer: | Zila, Inc.
|
| Issue: | Stock
|
| Amount: | $15,925,000
|
| Shares: | 9.1 million
|
| Price: | $1.75
|
| Warrants: | For 4.37 million shares
|
| Warrant expiration: | Nov. 9, 2011
|
| Warrant strike price: | $2.21
|
| Announcement date: | Nov. 13
|
| Stock symbol: | Nasdaq: ZILA
|
| Stock price: | $1.92 at close Nov. 13
|
|
|
| Unsecured convertible note
|
| Issuer: | Zila, Inc.
|
| Issue: | Short-term unsecured convertible note
|
| Amount: | $12,075,000
|
| Maturity: | May 2007
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $1.75
|
| Warrants: | For 1.03 million shares
|
| Warrant expiration: | Nov. 9, 2011
|
| Warrant strike price: | $2.21
|
| Announcement date: | Nov. 13
|
| Stock symbol: | Nasdaq: ZILA
|
| Stock price: | $1.92 at close Nov. 13
|
|
|
| Secured convertible note
|
| Issuer: | Zila, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $12 million
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $2.20
|
| Warrants: | For 1.91 million shares
|
| Warrant expiration: | Nov. 9, 2011
|
| Warrant strike price: | $2.21
|
| Announcement date: | Nov. 13
|
| Stock symbol: | Nasdaq: ZILA
|
| Stock price: | $1.92 at close Nov. 13
|
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