New Issue: Manhattan Pharmaceuticals wraps $1.73 million promissory notes sale

By Devika Patel

Knoxville, Tenn., Feb. 4 - Manhattan Pharmaceuticals, Inc. settled a $1.73 million private placement of promissory notes with a third tranche on Tuesday, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company raised $1.04 million in the first tranche on Nov. 19, when the deal priced for up to $2.5 million with a $1 million greenshoe. It raised $280,000 in the second tranche on Dec. 23 and $410,000 in the third tranche.

The notes were 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, 56 units in the second tranche and 82 units in the third tranche.

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:	$1,725,000
Units:	345
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), Dec. 23 (for $280,000), Feb. 3 (for $410,000)
Stock symbol:	OTCBB: MHAN
Stock price:	$0.01 at close Nov. 19
Notes
Coupon:	12%
Price:	Par of $5,000
Yield:	12%

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