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news.Accentia Biopharmaceuticals has entered into definitive agreements for a private placement offering of convertible preferred stock and warrants to new and existing institutional investors for gross proceeds of approximately $8.7 million before fees and expenses.
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Accentia intends to use the proceeds as working capital, including supporting drug development, regulatory strategies and marketing plans. The financing provides investors with the right to convert their shares of preferred stock into shares of the company’s common stock at $2.67 per share. The offering includes short-term warrants allowing investors to purchase that number of common shares into which the purchaser’s preferred stock is convertible. These short-term warrants will be exercisable for cash only at $2.67 per share for a period of 30 days.
Additionally, the offering includes long-term warrants allowing investors to purchase 50% of the number of common shares into which the purchaser’s preferred stock is convertible. These long-term warrants have an exercise price of $2.67 per share and are exercisable for a period of six years.