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Print Edition StoriesMonday, September 14, 2009
Generex grabs $11.6M from private stock sale
By Mass High Tech staff
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Worcester-based drug delivery technology company Generex Biotechnology Corp. reports it will raise $11.6 million through a private placement of the company’s common stock and warrants to buy more shares.
Generex says investors have agreed to buy 15.3 million shares and warrants to buy 5.05 million more shares at a price of 80 cents per combined share-and-warrant unit. The holders of the warrants can buy shares at $1 each beginning 183 days after they are issued through five years from that point, Generex officials said.
Last week, Generex (Nasdaq: GNBT) won approval to use its Oral-lyn treatment of Type 1 or Type 2 diabetes mellitus for patients facing serious or life-threatening conditions that have no alternative treatment options, even though the drug is still in Phase 3 clinical trials. The approval came from the U.S. Food and Drug Administration under its Treatment Investigational New Drug program, which allows drugs in trials to be used as a treatment for patients who have no other choices.
In June, Generex held a similar registered direct offering, selling 17.2 million shares of common stock at 64 cents per share to certain investors, resulting with net proceeds of $10.8 million. That offering also included five-year warrants for investors to buy up to 8.6 million shares at 76 cents per share.
Generex researches, develops and markets drug delivery systems based on absorption through the lining of the mouth.
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