The $30.6 million offering was for the sale of 981,411 units. Each unit consists of one share of exchangeable preferred stock and a warrant to acquire additional shares of common stock.
Upon shareholder approval, each share of preferred stock will be exchanged for 26 shares of Neurogen’s common stock, subject to certain conditions. The warrants included in the unit allow investors to purchase 50% of the number of common shares into which the purchaser’s preferred stock is exchangeable at an exercise price of $2.30 per share.
The net proceeds from this offering will be used for clinical development of existing product candidates and other general corporate purposes.