By Sheri Kasprzak
Atlanta, Feb. 24 - The BioBalance Corp., a subsidiary of New York Health Care Inc., said it has wrapped a $4,898,000 private placement.
The company sold 7.9 million shares at $0.62 each to institutional and accredited investors, including Mellon HBV Alternative Strategies and Little Gem Life Sciences Fund LLC.
The investors also received warrants for up to 3.9 million additional shares at $0.78 each.
Sterling Financial Investment Group was the placement agent.
The closing of the deal triggered the resignation at New York Health of chief executive officer Jerry Braun and chief operating officer Jacob Rosenberg. Dennis O'Donnell, president and chief executive officer of BioBalance, was named chief executive officer and secretary of New York Health.
Based in New York, BioBalance is a pharmaceutical company focused on treatments for gastrointestinal disorders. The proceeds from the offering will be used to support research and development and clinical trials. The remainder will be used for working capital.
| Issuer: | The BioBalance Corp.
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| Issue: | Stock
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| Amount: | $4,898,000
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| Shares: | 7.9 million
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| Price: | $0.62
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| Warrants: | For up to 3.9 million shares
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| Warrant strike price: | $0.78
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| Placement agent: | Sterling Financial Investment Group
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| Investors: | Mellon HBV Alternative Strategies, Little Gem Life Sciences Fund LLC
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| Settlement date: | Feb. 24
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| Stock price: | $0.88 at close Feb. 24
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