By Sheri Kasprzak
Atlanta, Nov. 11 - BioSphere Medical Inc. has closed its previously announced $8 million private placement, the company said Thursday morning.
The company sold to Sepracor Inc. and affiliates of Cerberus Capital Management LP 8,000 shares of its series A preferred stock at $1,000 per share. The shares are convertible into 2 million common shares at $4, or a 32% premium over the company's closing price on Nov. 10.
The series A stock has a 6% dividend, payable quarterly in cash or additional shares of the series A stock.
The investors also received warrants for 400,000 shares at $4 per share exercisable for five years.
Based in Rockland, Mass., BioSphere is a medical device company focused on bioengineered microspheres to treat uterine fibroids, hypervascularized tumors and vascular malformations in the blood supply.
The company plans to use the proceeds from the offering for general corporate purposes, including working capital and capital expenditures.
| Issuer: | BioSphere Medical Inc.
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| Issue: | Series A preferred stock
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| Amount: | $8 million
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| Shares: | 8,000
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| Price: | $1,000
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| Conversion: | Into 2 million common shares at $4
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| Conversion premium: | 32%
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| Warrants: | 400,000
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| Warrant expiration: | Five years
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| Warrant strike price: | $4
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| Investors: | Sepracor Inc. and Cerberus Capital Management LP
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| Announcement date: | Nov. 3
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| Settlement date: | Nov. 10
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| Stock price: | $2.64 at close Nov. 3
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| Stock price: | $3.03 at close Nov. 10
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