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news.Neurologix has completed a private placement of an additional $5 million of series D convertible preferred stock at a price of $35 per share. Each share of series D stock is convertible into approximately 30.17 shares of common stock.
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Each share of outstanding series D stock is entitled to receive a semi-annual cash dividend at an annual rate of 7%, to be cumulative until paid. As part of this transaction, the purchaser, together with the other holders of series D stock, has been granted certain additional demand registration rights. The warrants have a term of seven years and are automatically exercised at the end of the term if they are in the money.
The sole purchaser in the transaction was Corriente Master Fund, a previous investor in the company’s series D stock. In addition, the company issued warrants to purchase approximately 1.08 million shares of its common stock at an exercise price of $1.39 per share.
The proceeds from the transaction, net of expenses, will be used to finance the further clinical development of the company’s gene transfer technology for Parkinson’s disease and other indications, and for corporate purposes.