|ADVENTRX Pharmaceuticals makes two announcements|
|By Staff and Wire Reports|
|Friday, 07 January 2011 07:29|
Look for shares of ADVENTRX Pharmaceuticals (NYSE Amex: ANX) to fall after the company announced this morning that it has raised $22.5 Million through a deal placed by Rodman & Renshaw.
The company announced today also that it has signed a term sheet to acquire a private company that holds certain rights and know-how to poloxamer-based therapeutics. The term sheet is non-binding on both ADVENTRX and the target company. Current discussions with the target company contemplate an all-stock acquisition by merger. The target company has no employees, but in connection with a transaction ADVENTRX expects to retain the services of certain members of the target company's management team who have been involved in the development of the TPC.
The company entered into definitive agreements to sell 8,184,556 units in a registered direct offering to RA Capital Management, certain healthcare-focused investors, and other institutional investors for a per unit purchase price of $2.75, representing gross proceeds to ADVENTRX of approximately $22.5 million. The stock closed yesterday's trading at $2.93.
The Series A warrants are exercisable for up to an aggregate of 2,046,139 shares of ADVENTRX's common stock.
The closing of the offering is expected to take place on or about January 11, 2011, subject to the satisfaction of customary closing conditions.