Someone still believes, but it may explain why price stayed so low
North American Vaccine Announces $25 Million Financing and Change In Management
COLUMBIA, Md., Sept. 24 /PRNewswire/ -- North American Vaccine (Amex: NVX) announced today that it has reached an agreement in principle to raise $25 million through a private placement of five-year, secured, convertible debentures, having a 4.5% coupon rate. The debentures initially will be convertible into common shares at a conversion price equal to the average closing price for the Company's common shares for the 20 trading days preceding today's announcement. The Company may redeem the debentures at par any time after the first anniversary of the debentures' issuance.
The debentures will be sold to current shareholders, BioChem Pharma Inc. and Dr. Phillip Frost, and certain other institutional investors. Closing on the financing is subject to the preparation and execution of definitive agreements and to shareholder approval, if necessary.
The Company also announced today that Dr. Sharon Mates has been replaced as President of the Company.
In recognition of the Company's emerging needs as an operating company, the Company expects shortly to select a new chief executive officer with proven skill and experience in the industry who will be able to lead the Company in the continued development of its business and operations. Mr. Neil Flanzraich, Chairman of the Board of Directors stated, "The Company is in the final stages of negotiation with a candidate whom the Board believes is particularly well suited to position the Company to compete successfully in the vaccine marketplace and to develop and commercialize new products." Until a new chief executive officer is appointed, the Company has appointed Dr. Arthur Y. Elliott, Senior Vice President - Operations and Chief Operating Officer, as acting President. |
