By Sheri Kasprzak
New York, April 19 - Alteon Inc. has negotiated a $2,575,000 private placement as part of its merger agreement with HaptoGuard, Inc.
A group of new and existing institutional investors agreed to buy 10.3 million units at $0.25 each.
The units consist of one share and one warrant. The warrants are exercisable at $0.30 each for five years.
Rodman & Renshaw, LLC is the placement agent.
Proceeds will be used to fund clinical development efforts after Alteon and HaptoGuard complete their merger.
Alteon said Wednesday that it entered into a definitive merger agreement with HaptoGuard. The two companies will combine operations in a stock transaction equal to $8.8 million.
Under the merger terms, HaptoGuard's shareholders will receive 37.4 million shares of Alteon, which represents 31% of the company's total share capital.
Based in Parsippany, N.J., Alteon is a biotechnology company focused on treatments for heart disease and diabetes.
| Issuer: | Alteon Inc.
|
| Issue: | Units of one share and one warrant
|
| Amount: | $2,575,000
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| Units: | 10.3 million
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| Price: | $0.25
|
| Warrants: | One warrant per unit
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| Warrant expiration: | Five years
|
| Warrant strike price: | $0.30
|
| Placement agent: | Rodman & Renshaw, LLC
|
| Announcement date: | April 19
|
| Stock symbol: | AMEX: ALT
|
| Stock price: | $0.26 at close April 19
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