Genta Inc. announced Monday that it has raised an additional$6.1 million from the private placement of its units, bringingthe placement's total gross proceeds to $30 million.
Each unit consists of one share of the San Diego company'sSeries A convertible preferred stock and a warrant to acquireone share of common stock (NASDAQ:GNTA).
The first segment of this placement, arranged by Alex. Brown &Sons Inc. and Montgomery Securities, closed in late September.At that time, Genta placed 477,540 units at $50 per unit.
The preferred stock is convertible into shares of Genta commonstock at $9 per share, subject to adjustment in certainconditions. Dividends are payable on the preferred stock.
In February the antisense drug developer had tried raisingfunds publicly through a secondary stock offering of 2.5 millionshares of common stock, but withdrew the offering in Aprilbecause the markets had proved inhospitable to biotechnologystocks.
Genta's stock lost 50 cents a share on Monday, closing at $8.50.--Jennifer Van Brunt
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