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news.Novelos Therapeutics has entered into a definitive agreement with existing institutional investors to raise $5 million in gross proceeds through the sale of shares of a new series of its convertible preferred stock and warrants to purchase its common stock.
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Novelos has agreed to sell 100 shares of series D convertible preferred stock, having a stated value equal to $50,000 per share, a cumulative annual dividend of 9% of stated value and a conversion price of $0.65 per share of common stock. The investors will also receive warrants, callable in certain circumstances, expiring in five years to purchase an aggregate of 3.84 million shares of common stock at an exercise price of $0.65 per share. The transaction is expected to close within two weeks, subject to the satisfaction of certain closing conditions.
Harry Palmin, president and CEO of Novelos, said: “We expect data from the Phase II ovarian cancer trial next week and the Phase II breast cancer trial next quarter, and conclusion of our pivotal Phase III lung cancer trial in mid-2009.”