Gross proceeds to the company are expected to be approximately $5.3 million. In the purchase agreement, Nordic Biotech Opportunity Fund, an affiliate of Nordic Biotech, the company’s largest shareholder, agreed to purchase approximately 75% of the shares and warrants that will be sold, for gross proceeds of $4 million.
The common stock will be sold for a price of $1.32 per share and the warrants will have an exercise price of $1.32 per share, with an expiration date of September 30, 2009. The company expects the financing to close on or about April 17, 2008, subject to satisfaction of certain customary closing conditions.
The company plans to use the proceeds of the private placement for general corporate purposes including development of its investigational drug NB S101, corporate operating expenses, working capital and capital expenditures.