LifeCell Corp. announced that it expects to raise about $3.5million in a redemption of all its outstanding common stockpurchase warrants for 50 cents per warrant.
According to LifeCell spokesman Anthony Brown, thecompany's outstanding stock is held in two parts: 1,020,524units of common stock and 2,804,000 of class 1 stock that arein currently in lock-up and will convert into common stock asof Feb. 27, 1994.
The company has set a redemption date of Dec. 31. Each twowarrants represent the right to purchase one share of LifeCell'scommon stock (NASDAQ:LIFC) for $7.65 per share at any timebefore the close of business on the date preceding theredemption date. LifeCell stock was down $2.25 a share onTuesday to $9.50.
Society Investment Management and Trust Services is thewarrant agent for the redemption and for any exercise of thewarrants.
Paul Frison, LIfeCell's president and chief executive officer, saidthe proceeds will help fund the commercialization of AlloDerm,the company's processed dermal skin replacement tissue,which the Houston company expects to enter the market inmid-to-late 1993.
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