Deal funds concept trials, general corporate, working capital purposes
By Devika Patel
Knoxville, Tenn., March 11 - Immune Pharmaceuticals Inc. arranged an $11.7 million private placement of units on March 10, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal was announced Monday.
The company will sell 11,700 units at $1,000 per unit. Each unit consists of one 8% series C convertible preferred share and a half-share warrant.
Each preferred converts to common stock at an initial conversion price of $3.40 per share. The preferreds will automatically convert into common stock if the company completes a public equity sale of at least $10 million.
The whole warrants are initially exercisable at $4.25 for five years. The strike price is a 6.52% premium to the March 7 closing share price of $3.99. The conversion price is a 14.79% discount to that price.
Investors include chairman and chief executive officer Daniel Teper and directors Daniel Kazado, Isaac Kobrin, Rene Lerer and David Sidransky.
Settlement is expected March 12.
Proceeds will be used for the bertilimumab phase II proof of concept trials in ulcerative colitis and in bullous pemphigoid, an orphan auto-immune dermatological indication and for general corporate and working capital purposes.
The specialty pharmaceutical company is based in Tarrytown, N.Y.
| Issuer: | Immune Pharmaceuticals Inc.
|
| Issue: | Units of one series C convertible preferred share and a half-share warrant
|
| Amount: | $11.7 million
|
| Units: | 11,700
|
| Price: | $1,000
|
| Dividends: | 8%
|
| Conversion price: | $3.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.25
|
| Investors: | Daniel Teper, Daniel Kazado, Isaac Kobrin, Rene Lerer and David Sidransky
|
| Announcement date: | March 10
|
| Pricing date: | March 10
|
| Settlement date: | March 12
|
| Stock symbol: | OTCBB: IMNP
|
| Stock price: | $3.99 at close March 7
|
| Market capitalization: | $54.43 million
|
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