Brokered deal sells units of preferred stock, two types of warrants
By Devika Patel
Knoxville, Tenn., May 6 - Bioanalytical Systems, Inc. said it has arranged a $5.51 million registered direct offering of preferred units through agent Ladenburg Thalmann & Co. Inc.
The company will sell 5,506 preferred units of one series A convertible preferred share, a five-year class A warrant for 250 shares and a one-year class B warrant for 250 shares. The units are each priced at $1,000.00.
The 6% preferreds are each convertible into 500 shares at $2.00 per share, and the warrants are each exercisable at $2.00. The conversion price and strike price represent an 11.89% discount to the May 5 closing share price of $2.27.
Settlement is expected on May 11.
Proceeds will be used to buy laboratory equipment and for working capital and general corporate purposes.
Bioanalytical Systems, based in West Lafayette, Ind., provides contract drug development services and research equipment to drug research and development companies and institutions.
| Issuer: | Bioanalytical Systems, Inc.
|
| Issue: | Units one series A convertible preferred share, a class A warrant and a class B warrant
|
| Amount: | $5,506,000
|
| Units: | 5,506
|
| Price: | $1,000.00
|
| Warrants: | Two warrants per unit
|
| Warrant expiration: | Five years (class A), one year (class B)
|
| Warrant strike price: | $2.00
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | May 6
|
| Settlement date: | May 11
|
| Stock symbol: | Nasdaq: BASI
|
| Stock price: | $2.27 at close May 5
|
| Market capitalization: | $10.42 million
|
|
|
| Preferreds
|
| Dividends: | 6%
|
| Conversion price: | $2.50
|
| Conversion ratio: | Into 500 shares (per preferred)
|
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