BioSante Pharmaceuticals, Inc. (BPAX: Quote) said Friday that it has received a commitment from an institutional investor to purchase about $3.475 million of securities in a registered direct offering.
The company expects to receive net proceeds of about $3.3 million after deducting placement agent fees and other offering expenses.
BioSante has entered into a securities purchase agreement with the investor pursuant to which BioSante has agreed to sell about 2.36 million shares of its common stock and warrants to purchase up to about 1.18 million additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, will be sold for a purchase price of $1.4725, a premium to the closing price on the day before pricing.
The offering is expected to be consummated by August 21.
Proceeds from the deal will be used for general corporate purposes, including increasing its cash reserve for payment of its 3.125% convertible senior notes due May 1, 2013 and to fund its LibiGel clinical activities.
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by RTT Staff Writer
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