Lidak Pharmaceuticals announced Wednesday that it has raisedabout $8.4 million from the exercise of about 97 percent of 5.8million class A warrants outstanding.
The exercise price was $1.50. Holders who exercised willreceive one share of Lidak common stock and one class Bwarrant, resulting in about 11 million shares outstanding, saidDavid Katz, president and chief executive officer. Each class Bwarrant (NASDAQ:LDAKM) entitles the holder to buy a share ofcommon for $2.25.
The stock closed at $1.63, down 6 cents, on Wednesday.
All class A warrants not exercised by May 18 will be redeemedby the La Jolla, Calif., company for about $8,600. Following theredemption, trading will cease on the class A warrants(NASDAQ:LDAKW) and units (NASDAQ:LDAKM), which consistedof five shares of common and five class A warrants.
The $8.4 million, plus $4 million raised in a recent privateplacement "puts us in a nice cash position," Katz said. Lidak hascompleted Phase I trials of Lidakol, an anti-viral and anti-inflammatory product, as a treatment for herpes and otherindications. -- KH
(c) 1997 American Health Consultants. All rights reserved.