Five-year warrants included in equity units; units sold at $0.25 each
By Devika Patel
Knoxville, Tenn., May 1 - Biozone Pharmaceuticals, Inc. settled a $150,000 tranche of a private placement of units on April 25, according to an 8-K filed Thursday with the Securities and Exchange Commission. It raised $500,000 on April 12 and $300,000 on April 18.
The company sold 2 million units of one common share and a half-share warrant at $0.25 per unit in the first tranche and 1.2 million units at the same price in the second tranche. The company sold 600,000 units in the third tranche.
The whole warrants are each exercisable at $0.50 for five years. The strike price reflects a 25% premium to the April 11 closing share price of $0.40.
The investor in the third tranche also received 1 million common shares as an inducement for the investment.
Biozone is an Englewood cliffs, N.J., biopharmaceutical company.
| Issuer: | Biozone Pharmaceuticals, Inc.
|
| Issue: | Units of one common share and a half-share warrant, 1 million common shares
|
| Amount: | $950,000
|
| Units: | 3.8 million
|
| Price: | $0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Settlement date: | April 12 (for $500,000), April 18 (for $300,000), April 25 (for $150,000)
|
| Stock symbol: | OTCBB: BZNE
|
| Stock price: | $0.40 at close April 11
|
| Market capitalization: | $31.57 million
|
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