By Sheri Kasprzak
New York, Aug. 7 - Cel-Sci Corp. received agreements from a group of institutional investors for an $8.3 million private placement of convertible notes.
The notes are due Aug. 4, 2011 and are convertible into common shares at $0.86 each. The notes bear interest at the greater of 8% or Libor plus 300 basis points annually.
The investors also received series K warrants for 4,825,581 shares, exercisable at $0.95 each through Feb. 4, 2012. The warrants are not exercisable until Feb. 4, 2007.
Maxim Group, LLC was the placement agent.
Proceeds will be used for development and working capital.
Cel-Sci, based in Vienna, Va., develops immune system-based treatments for cancer and infectious diseases. The company's Multikine product for the treatment of head and neck cancers is heading into phase 3 clinical trails.
| Issuer: | Cel-Sci Corp.
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| Issue: | Convertible notes
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| Amount: | $8.3 million
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| Maturity: | Aug. 4, 2011
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| Coupon: | The greater of 8% or Libor plus 300 basis points
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| Conversion price: | $0.86
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| Warrants: | For 4,825,581 shares
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| Warrant expiration: | Feb. 4, 2012
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| Warrant strike price: | $0.95
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| Placement agent: | Maxim Group, LLC
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| Settlement date: | Aug. 4
|
| Stock symbol: | Amex: CVM
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| Stock price: | $0.75 at close Aug. 4
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