By Sheri Kasprzak
New York, July 20 - Alfacell Corp. wrapped an $11,300,051 private placement with a group of institutional and individual investors led by ProMed Management, Inc.
The investors agreed to buy 6,457,172 shares at $1.75 each.
The investors received series A-1 warrants for 3,228,586 shares, exercisable at $2.88 each through July 17, 2011, and series A-2 warrants for 3,228,586 shares, exercisable at $2.88 each through July 17, 2011. The second series will be cancelled if Alfacell enters into a strategic collaboration by Dec. 31.
C.E. Unterberg, Towbin LLC was the placement agent.
Proceeds will be used for general corporate purposes and to support the company's three-year strategic plan.
Connected to the offering, Alfacell reduced the strike price on warrants for 1,374,585 shares to $2.88. The warrants will not be exercisable until Jan. 19, 2007.
Located in Bloomfield, N.J., Alfacell is a biopharmaceutical company focused on developing treatments for cancer and other diseases using a ribonuclease technology platform. Its onconase product is currently in phase 3b clinical trials to treat unresectable malignant mesothelioma.
| Issuer: | Alfacell Corp.
|
| Issue: | Stock
|
| Amount: | $11,300,051
|
| Shares: | 6,457,172
|
| Price: | $1.75
|
| Warrants: | Series A-1 warrants for 3,228,586 shares; series A-2 warrants for 3,228,586 shares
|
| Warrant expiration: | July 17, 2011
|
| Warrant strike price: | $2.88
|
| Placement agent: | C.E. Unterberg, Towbin LLC
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| Investors: | ProMed Management, Inc. (lead)
|
| Settlement date: | July 20
|
| Stock symbol: | Nasdaq: ACEL
|
| Stock price: | $2.86 at close July 19
|
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