By Sheri Kasprzak
New York, Feb. 28 - Accentia Biopharmaceuticals, Inc. is gearing up to close a $24.7 million private placement of convertible debentures with a group of institutional investors.
The 8% debentures are due in four years and are convertible into common shares at $4.00 each.
The investors also received warrants for 35% of the shares issuable upon conversion, exercisable at $4.25 each for five years, and warrants for 50% of the shares issuable upon conversion, exercisable at $4.00 each for 60 days after the registration statement is declared effective.
Rodman & Renshaw, LLC was the placement agent for the deal, which is set to close March 1.
Proceeds will be used for clinical development and for the acquisition of late-stage drug candidates.
Tampa, Fla.-based Accentia develops late-stage clinical products, mostly for drugs that have already been approved, in new formulations or indications.
| Issuer: | Accentia Biopharmaceuticals, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $24.7 million
|
| Maturity: | Four years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $4.00
|
| Warrants: | For 35% of the shares issuable upon conversion and for 50% of the shares issuable upon conversion
|
| Warrant expiration: | Five years for the 35% warrants, 60 days after registration statement is effective for 50% warrants
|
| Warrant strike price: | $4.25 for 35% warrants, $4.00 for 50% warrants
|
| Placement agent: | Rodman & Renshaw, LLC
|
| Announcement date: | Feb. 28
|
| Settlement date: | March 1
|
| Stock symbol: | Nasdaq: ABPI
|
| Stock price: | $3.83 at close Feb. 27
|
© 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.
