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news.Pro-Pharmaceuticals has entered into definitive agreements with new and existing investors to raise gross proceeds of $3.77 million though a registered direct offering.
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Under terms of the agreements, the company will sell 7.5 million shares of its common stock at $0.50 per share. As part of the transaction, the investors also will receive warrants, with a five-year term, to purchase 7.5 million shares of common stock at an exercise price of $0.70. Investors also will receive warrants, with a term of four months, to purchase a total of 3.02 million of common stock with an exercise price of $0.67 per share. The warrants will not be exercisable until August 16, 2008.
The transaction is expected to close on February 20, 2008, subject to customary closing conditions. The company plans to use the proceeds of this transaction for working capital.