(AP) — BioSante Pharmaceuticals Inc. said Monday it has received commitments from several institutional investors, including shareholder Deerfield Management Co., to buy $15 million worth of its stock and warrants.
BioSante is offering about 7.1 million common shares and warrants to purchase up to 3.55 million additional shares of its common stock.
Each unit, consisting of one share of stock and a warrant to buy a half-share of stock, will be sold for a $2.1025 apiece. The warrants will be exercisable at $2.45 per share over the next five years.
The sale's potential dilution to current shareholders' stakes sent the stock down 19 cents, or 9 percent, to close at $1.90 on Monday.
The company said it will use the estimated $14.2 million in net proceeds for general corporate purposes, including further development of the female low sex drive drug LibiGel.
Rodman & Renshaw LLC acted as placement agent for the transaction. JMP Securities LLC, Oppenheimer & Co. Inc. and Trout Capital LLC acted as financial advisers.
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