By Laura Lutz
Des Moines, Jan. 18 - Accentia Biopharmaceuticals, Inc. arranged an $8.7 million private placement of convertible preferred stock with new and existing investors, according to a news release.
Rodman & Renshaw, LLC is the placement agent.
The preferreds will be convertible into common stock at $2.67 per share.
Each investor will also receive 30-day warrants for the number of shares into which that investor's preferreds are convertible and six-year warrants for half of the number of shares into which its preferreds are convertible.
The 30-day warrants will be exercisable at $2.67 for 30 days after Accentia announces unblended results of a completed phase 3 clinical trial for SinuNase. If no such announcement is made, the 30-day exercise period will begin on Dec. 2, 2008.
The six-year warrants also have a strike price of $2.67.
Proceeds will be used for drug development, regulatory strategies, marketing plans and other working capital.
Accentia is a biopharmaceutical company based in Tampa, Fla.
| Issuer: | Accentia Biopharmaceuticals, Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $8.7 million
|
| Conversion price: | $2.67
|
| Warrants: | 30-day for number of shares into which preferreds are convertible; six-year warrants for 50% of number of shares into which preferreds are convertible
|
| Warrant expiration: | 30 days, beginning on earlier of Dec. 2, 2008 and announcement of phase 3 clinical trial unblinded results for Sinunase for two-thirds of warrants; six years for one-third of warrants
|
| Warrant strike price: | $2.67
|
| Agent: | Rodman & Renshaw, LLC
|
| Announcement date: | Jan. 18
|
| Stock symbol: | Nasdaq: ABPI
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| Stock price: | $2.63 at close Jan. 17
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