By Sheri Kasprzak
Atlanta, Dec. 7 - Cambridge Heart Inc. said Tuesday it has raised $5 million through a private placement of series B convertible preferred stock.
The company issued 5,000 shares of the series B preferreds at $1,000 each to new and current institutional and private investors.
The preferreds are convertible into a number of shares at $0.45 each. The preferreds are initially convertible into 2,222 shares. The total number of common shares initially issuable upon conversion of the 5,000 in preferreds is about 11,111,111. The conversion price is equal to $1,000 divided by the conversion price.
Cambridge Heart also issued warrants for 2,500 shares of series B preferreds at $1,100 each through Dec. 6, 2009.
Based in Bedford, Mass., Cambridge Heart develops noninvasive diagnostic tools for cardiac arrest and ventricular arrhythmia. It plans to use the proceeds from the offering to fund its operations.
| Issuer: | Cambridge Heart Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $5 million
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| Shares: | 5,000
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| Price: | $1,000
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| Conversion price: | $0.45
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| Conversion ratio: | 2,222 shares
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| Warrants: | For 2,500 series B preferreds
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| Warrant expiration: | Dec. 6, 2009
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| Warrant strike price: | $1,100
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| Announcement date: | Dec. 6
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| Stock price: | $0.57 at close Dec. 6
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