Deal raises proceeds for clinical development programs, operations
By Devika Patel
Knoxville, Tenn., Feb. 2 - Adeona Pharmaceuticals, Inc. gave further details about a registered direct offering of stock in a prospectus supplement filed Wednesday with the Securities and Exchange Commission. The deal priced for $4 million on Jan. 28.
The company will sell 2,857,144 common shares at $1.40 per share to two new institutional investors.
The investors will also receive warrants to purchase 1,428,572 common shares exercisable at $2.00 per share for 13 months.
The price per share is a 3.45% discount to the Jan. 27 closing share price of $1.45. The warrant strike price is a 37.93% premium to that price.
"This financing will allow us to continue developing our zinc-based therapy currently in a clinical study and, if clinical results are positive, will allow us to further our commercialization efforts as a prescription medical food for Alzheimer's disease," James S. Kuo, Adeona's chairman and chief executive officer, said in a press release at pricing.
Proceeds will be used for general corporate purposes, including conducting operations and advancing clinical development programs.
Chardan Capital Markets is the agent.
Adeona is an Ann Arbor, Mich., developer of innovative medicines for serious central nervous system diseases.
| Issuer: | Adeona Pharmaceuticals, Inc.
|
| Issue: | Stock
|
| Amount: | $4 million
|
| Shares: | 2,857,144
|
| Price: | $1.40
|
| Warrants: | For 1,428,572 shares
|
| Warrant strike price: | $2.00
|
| Warrant expiration: | 13 months
|
| Agent: | Chardan Capital Markets
|
| Pricing date: | Jan. 28
|
| Stock symbol: | AMEX: AEN
|
| Stock price: | $1.45 at close Jan. 27
|
| Market capitalization: | $32.42 million
|
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