By Sheri Kasprzak
New York, Dec. 1 - Avicena Group, Inc. settled a private placement of units for $2.5 million.
The company sold 500,000 units comprised of one share of series A convertible preferred stock and one half-share warrant at $5.00 per unit.
Each warrant is exercisable at $7.00 through Dec. 31, 2011.
The company intends to sell a total of 3.5 million units for potential proceeds of $17.5 million.
Holders of the preferreds may convert the preferreds between June 30, 2007 and Dec. 31, 2009 on a one-for-one basis for common stock. Any time after Dec. 31, 2008, Avicena may require the holders to either convert their preferreds for common stock on a one-for-one basis or redeem the preferreds at $5.00 per share.
Avicena, based in Palo Alto, Calif., is a biotechnology company focused on developing treatments for rare diseases like Huntington's disease and Parkinson's disease.
| Issuer: | Avicena Group, Inc.
|
| Issue: | Units of one series A convertible preferred share and one half-share warrant
|
| Amount: | $2.5 million
|
| Units: | 500,000
|
| Price: | $5.00
|
| Dividends: | 10%
|
| Conversion ratio: | One common share per preferred
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Dec. 31, 2011
|
| Warrant strike price: | $7.00
|
| Settlement date: | Nov. 27
|
| Stock symbol: | OTCBB: AVGO
|
| Stock price: | $5.80 at close Nov. 27
|
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