By Sheri Kasprzak
New York, Dec. 28 - MacroChem Corp. said it has concluded a $2.5 million private placement of series C cumulative convertible preferred stock.
The company sold 250 shares of the preferreds to SCO Capital Partners LLC and Lake End Capital LLC.
The 10% preferreds are initially convertible into 100 million common shares.
The investors also received warrants for 100 million shares, exercisable at $0.03 each for six years.
Connected to the offering, MacroChem agreed to effect by Jan. 2, 2006 a 1-for-7 reverse stock split of its common stock and effect an additional 1-for-6 reverse stock split as soon as practicable.
Based in Lexington, Mass., MacroChem is a biopharmaceutical company focused on developing transdermal drug delivery products.
| Issuer: | MacroChem Corp.
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| Issue: | Series C cumulative convertible preferred stock
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| Amount: | $2.5 million
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| Shares: | 250
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| Price: | $10,000
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| Dividends: | 10%
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| Conversion ratio: | Into 100 million common shares
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| Warrants: | For 100 million shares
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| Warrant expiration: | Six years
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| Warrant strike price: | $0.03
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| Investors: | SCO Capital Partners LLC and Lake End Capital LLC
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| Settlement date: | Dec. 28
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| Stock price: | $0.225 at close Dec. 28
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