By Sheri Kasprzak
Atlanta, April 4 - Access Pharmaceuticals Inc. said it has received a standby equity distribution agreement for up to $15 million and has closed a private placement of secured convertible debentures for $2,633,000.
Under the terms of the equity line, Access will sell shares to Cornell Capital Partners LP at 98% of the volume weighted average price over a predetermined amount of time. The line has a two-year term.
There is a $1 million limit on each draw.
Newbridge Securities Corp. was the placement agent for the equity line.
The company also sold secured convertible debentures to Cornell Capital and Highgate House Funds.
The debentures bear interest at 7%, mature in one year and are convertible into common shares at $4.00 each.
The debentures may be redeemed upon three days' notice at 110% of the amount to be redeemed.
Based in Dallas, Access is a pharmaceutical company focused on the development of novel low-development risk product candidates and longer-term products, including a treatment for cancer.
Equity distribution agreement
| Issuer: | Access Pharmaceuticals Inc.
|
| Issue: | Standby equity distribution agreement
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| Amount: | $15 million
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| Price: | 98% of the volume weighted average price over a predetermined amount of time
|
| Tenor: | Two years
|
| Warrants: | No
|
| Investors: | Cornell Capital Partners LP
|
| Placement agent: | Newbridge Securities Corp.
|
| Settlement date: | March 30
|
| Stock price: | $2.49 at close March 30
|
|
|
| Debentures
|
| Issuer: | Access Pharmaceuticals, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $2,633,000
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| Maturity: | One year
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| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
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| Conversion price: | $4.00
|
| Call: | Redeemable upon three days' notice at 110% of amount to be redeemed
|
| Warrants: | No
|
| Investors: | Cornell Capital Partners LP and Highgate House Funds
|
| Settlement date: | March 30
|
| Stock price: | $2.49 at close March 30
|
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