New Issue: Manhattan Pharmaceuticals plans $2.5 million sale of promissory notes

By Devika Patel

Knoxville, Tenn., Nov. 25 - Manhattan Pharmaceuticals, Inc. commenced a $2.5 million private placement of promissory notes on Nov. 19, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It raised $1.04 million in the first tranche.

The notes are being sold in units each consisting of $5,000 in 12% senior secured notes and warrants to buy 166,667 common shares, which are exercisable at $0.09 until Dec. 31, 2013. The company sold 207 units in the first tranche and may sell up to 500 units total.

There is a 200-unit greenshoe.

New York-based Manhattan is a pharmaceutical company focused on treating common and morbid obesity.

Issuer:	Manhattan Pharmaceuticals, Inc.
Issue:	Units of $5,000 in senior secured promissory notes and warrants for 166,667 shares
Amount:	$2.5 million
Greenshoe:	$1 million, or 200 units
Units:	500
Price:	$5,000
Warrants:	A warrant for 166,667 shares per unit
Warrant expiration:	Dec. 31, 2013
Warrant strike price:	$0.09
Settlement date:	Nov. 19 (for $1,035,000)
Stock symbol:	OTCBB: MHAN
Stock price:	$0.01 at close Nov. 19
Notes
Coupon:	12%
Price:	Par of $5,000
Yield:	12%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.