By Devika Patel
Knoxville, Tenn., June 17 - Accentia Biopharmaceuticals, Inc. said it will sell $8.5 million in discounted secured convertible debentures in a private placement, which will settle Tuesday.
The debentures are convertible into common stock at $1.10 per share.
After six months, the debentures will amortize through 30 equal installments.
The company may redeem the debentures at 110% of the outstanding principal.
The debentures were issued at an 8% original issue discount and bear interest at an annual rate of 8%, payable monthly starting one year from closing.
The offering includes warrants for approximately 2.8 million common shares, exercisable at $1.21 for six years.
Rodman & Renshaw, LLC is the agent.
Proceeds will be used to support development, regulatory and partnering strategies for SinuNase and Revimmune and support general operations.
Accentia is a biopharmaceutical company based in Tampa, Fla.
| Issuer: | Accentia Biopharmaceuticals, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $8.5 million
|
| Coupon: | 8%
|
| Price: | 92
|
| Conversion price: | $1.10
|
| Redemption premium: | 110%
|
| Warrants: | For approximately 2.8 million shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $1.21
|
| Agent: | Rodman & Renshaw, LLC
|
| Announcement date: | June 17
|
| Settlement date: | June 17
|
| Stock symbol: | Nasdaq: ABPI
|
| Stock price: | $1.28 at close June 16
|
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