Novelos has sold 113.5 shares of series D convertible preferred stock, having a stated value equal to $50,000 per share, a cumulative annual dividend of 9% of stated value and a conversion price of $0.65 per share of common stock. The investors also received warrants, callable in certain circumstances, expiring in five years to purchase an aggregate of 4.36 million shares of common stock at an exercise price of $0.65 per share.
Harry Palmin, president and CEO of Novelos, said: “We are very pleased to have these excellent institutional investors continue to support Novelos, providing funds for our current development programs into late-2008. Additional monies may come later this year from our ex-US partnering initiative or warrant exercises. Fundamentally, we expect data from the phase II breast cancer trial this quarter and detailed results of the phase II ovarian cancer trial will be presented at ASCO (May 30 – June 3). We also expect conclusion of our pivotal phase III lung cancer trial in mid-2009.”