A non-death spiral financing. Warrants, of course, but normal ones. We can expect another one of these this year . . .
>NeoTherapeutics Raises Approximately $6 Million Through Institutional Equity Placement
Proceeds to support expanded Neotrofin(TM) clinical trial program
IRVINE, Calif., May 18 /PRNewswire/ -- NeoTherapeutics, Inc. (Nasdaq: NEOT; NEOTW) announced today that it completed an equity placement to two institutional investors of 1.4 million shares at $4.25 per share. In addition, the investors received 5-year warrants to purchase 280,000 shares at $6.00 per share.
In addition to receiving cash, the Company was successful in renegotiating the terms of its previous financing agreement with these investors. As a result, the investors agreed to reduce the breakup fee for not exercising the second tranche of the April 17, 2001 financing agreement from $1 million to $405,000, and have deferred the payment requirement for 30 days.
``We have raised $20.5 million so far this year in a very difficult capital market,'' said Samuel Gulko, Senior Vice President, Finance and Chief Financial Officer of NeoTherapeutics. ``This marks our fourth straight fixed-price financing -- consistent with our previously announced financing strategy. The Company has now raised approximately $12 million since the end of the first quarter. We reported cash and equivalents of $14.1 million at the end of the first quarter and expect to spend between $25 and $30 million over the last nine months of 2001.''<<
snip
Cheers, Tuck |
