Spherix to sell up to $10 million convertible preferreds, warrants

By Rebecca Melvin

New York, July 2 - Spherix Inc. plans to price an offering of up to $10 million of convertible preferred stock and warrants to be sold via Rodman & Renshaw LLC as exclusive placement agent on a best-efforts basis, according to a prospectus.

The convertible preferred stock and warrants will be sold in units, with each unit consisting of one share of convertible preferred stock and a warrant to purchase common stock.

The company said it will enter into a securities purchase agreement directly with investors in the preferred offering.

Pricing information was not immediately available.

The convertible preferreds will be convertible at the option of the holder at any time into shares of Spherix common stock.

Proceeds are intended to fund the company's operations and to continue its development of D-tagatose, a low-calorie sweetener, for diabetes and triglycerides, as well as for general corporate purposes.

The closing price of Spherix common stock on the Nasdaq on July 2 was $1.35.

Bethesda, Md.-based Spherix is a biotechnology research and development company with a technical and regulatory consulting business.

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