NovaDel Announces $4 Million Financing
NovaDel entered into a private placement for up to $4 million, in the form of secured convertible promissory notes with an interest rate of 10% and warrants to purchase shares of the company’s common stock.
NovaDel intends to close on approximately $1.5 million in the initial closing upon AMEX approval and customary closing conditions. The balance will be available at the company’s behest.
NovaDel will use the proceeds to fund its product development activities, as well as its near-term general working capital requirements. The company believes that the proceeds will fund expenses for the remainder of 2008.
In the initial closing, the notes are convertible at a price of $0.295 per share. The purchasers will also receive five-year warrants to purchase 3.0 million shares of common stock with an exercise price of $0.369 per share.
