Steel Partners invests in shares at $0.35 each plus five-year note
By Jennifer Chiou
New York, Oct. 22 - Ore Pharmaceutical Holdings Inc. announced that it completed a $5.3 million debt and equity financing with Steel Partners, Ltd. that also provided Steel with the right to nominate two new Ore directors.
The company is selling $1.1 million of shares, comprised of 3,125,000 new shares at $0.35 apiece, while issuing a $4.2 million note due in 2015. The per-share price represents a 47.68% premium to the company's closing share price on Friday.
As part of the transaction, Steel has a say in the replacement of two of the company's directors, who have resigned in conjunction with the placement.
"This investment by Steel provides significant capital for Ore to put to work as it pursues new opportunities to acquire profitable businesses that can operate under the Ore umbrella," Ore chairman J. Stark Thompson said in a news release.
Also, Jack Howard, one of the new Steel directors, will become chairman of the board.
The Cambridge, Mass.-based company is focused on developing and monetizing its portfolio of pharmaceutical assets, which includes four clinical-stage compounds in-licensed from major pharmaceutical companies: ORE1001, its lead compound, ORE10002, ORE5002 (tiapamil) and ORE5007 (romazarit).
| Issuer: | Ore Pharmaceutical Holdings Inc.
|
| Issue: | Common stock, note
|
| Total amount: | $5.3 million
|
| Investor: | Steel Partners, Ltd.
|
| Announcement date: | Oct. 22
|
| Stock symbol: | Pink Sheets: ORXE
|
| Stock price: | $0.237 at close Oct. 22
|
| Market capitalization: | $1.3 million
|
|
|
| Stock
|
| Amount: | $1.1 million
|
| Shares: | 3,125,000
|
| Price: | $0.35
|
|
|
| Note
|
| Amount: | $4.2 million
|
| Maturity: | 2015
|
© 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.
