The company expects to use the proceeds from the financing to complete the submission of a new drug application to the FDA for its lead product candidate, Davanat, as well as for general corporate purposes.
At the initial closing, which occurred on February 12, 2009, the company issued and sold 900,000 shares of series B-1 preferred stock convertible into 3.6 million shares of common stock, Class A-1 and A-2 warrants exercisable to purchase an aggregate of 3.6 million shares of common stock and Class B warrants exercisable to purchase 7.2 million shares of common stock, for a gross purchase price of $1.8 million.
At one or more subsequent closings, which the company expects to occur on or before August 11, 2009, the company has agreed to issue and sell, subject to certain conditions, up to an additional 2.1 million shares of series B-2 preferred stock convertible into 8.4 million shares of common stock, Class A-1 and A-2 warrants exercisable to purchase an aggregate of up to 8.4 million shares of common stock, and Class B warrants exercisable to purchase up to 16.8 million shares of common stock, for a gross purchase price of $4.2 million.