The investors have agreed to purchase the shares of common stock and warrants to purchase common stock at a negotiated purchase price of $2.845 per unit, each unit consisting of one share and a warrant to purchase 0.6 shares of common stock. The warrants will be exercisable at any time prior to the fifth anniversary of the closing of the transaction. The exercise price of the warrants will be $2.77 per share.
Lazard Capital Markets has served as sole placement agent for the offering. The securities described above are being offered by the company pursuant to a previously filed registration statement, which was declared effective by the Securities and Exchange Commission on July 11, 2006. The transaction is expected to close on or about November 7, 2007, subject to customary closing conditions.