PR NEWSWIRE) Matritech Announces Commitment For $3.6 Million Financing
Matritech Announces Commitment For $3.6 Million Financing
NEWTON, Mass., Nov. 18 /PRNewswire/ -- Matritech, Inc. (Nasdaq: NMPS), a
company specializing in products designed to manage and screen cancer,
announced today that private investors have agreed to invest approximately
$3.6 million in the Company through a private placement of 900,670 units at a
price of $4 per unit. Each unit consists of two shares of Common Stock and a
warrant to purchase one share of Common Stock. The warrants may be exercised
at a price of $2.20 per share for a period of two years and are callable by
Matritech if certain Common Stock price levels are reached during this two
year period. The financing is expected to close in November, subject to
customary closing conditions. Matritech expects to receive net proceeds of
approximately $3.5 million after deducting the estimated expenses of the
transaction. No placement agent was involved in the transaction. Matritech
agreed to file a registration statement with the Securities and Exchange
Commission covering the resale of the shares issued in connection with the
private placement and the shares issuable upon exercise of the warrants.
Matritech intends to use the net proceeds from this private placement for
working capital and general corporate purposes.
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933 AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EXEMPTION FROM OR IN A TRANSACTION NOT SUBJECT TO THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THESE SECURITIES WERE
OFFERED AND ARE BEING SOLD ONLY TO ACCREDITED INVESTORS (AS DEFINED IN
REGULATION D UNDER THE SECURITIES ACT).
Separately, Matritech has agreed to reprice certain warrants issued to a
public relations consultant and a group of private investors in 1997. The
former exercise prices of $6.50 and $5.00 per share have been changed to $2.50
per share, better reflecting current price levels of Matritech's Common Stock.
Statement Under the Private Securities Litigation Reform Act
Any forward looking statements related to the Company's expectations
regarding the anticipated closing of the private placement are subject to a
number of risks and uncertainties, many of which are beyond the Company's
control. These include, but are not limited to, risks related to satisfying
the contractual conditions to closing and general business and economic
conditions. There can be no assurance that the Company's expectations for the
closing of the private placement will be achieved.
SOURCE Matritech, Inc.
-0- 11/18/1999
/CONTACT: Stephen D. Chubb, CEO or David L. Corbet, President both of
Matritech, Inc., 617-928-0820 or Derek Caldwell, Investor Relations of Sunrise
Financial Group, 212-421-1616 or Steve Danehy, Media Relations of Ronald
Trahan Associates, Inc., 617-332-0101/
/Web site: matritech.com
(NMPS)
CO: Matritech, Inc.
ST: Massachusetts
IN: MTC
SU: |
