Lidak Pharmaceuticals Inc. has raised $4.9 million throughplacements of convertible preferred stock and warrants, thecompany said Wednesday.
Lidak issued 5.2 million shares of Series B convertiblepreferred shares. Each preferred share, which may beconverted into a share of common stock (NASDAQ:LDAKA), canbe redeemed by the La Jolla, Calif., company for $1.24.
Also issued were redeemable five-year Class D warrants topurchase 2.6 million shares of common at $1.50 per share. Thestock closed unchanged at $2.25 on Wednesday.
The company, which is developing a topical treatment forherpes and other indications, will file a shelf registration withinsix months for the shares underlying the new securities.
Whale Securities Co. of New York placed $4 million, and theremainder was purchased from within the company.
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