NeoRx Corp. said Tuesday that it has signed a definitiveagreement under which New York investor David Blech willinvest $10 million in the Seattle-based company.

Under the deal, originally announced for at least $7 million,NeoRx will issue to Blech 10 million shares of common stock,5 million five-year warrants to purchase common stock at$1.75 per share, and 5 million five-year warrants to purchasecommon stock at $2.50 per share. If all the warrants areexercised, NeoRx would issue a total of 20 million shares for$31.3 million.

At an initial closing on Sept. 26, NeoRx received $1 million incash and issued 1 million shares of stock and warrants. Thebalance of the financing is scheduled to close on or before Dec.17.

Blech's initial purchase of 10 million shares would bring thenumber of NeoRx shares outstanding to 25.7 million, givingBlech 39 percent of shares outstanding.

Stock of NeoRx (NASDAQ:NERX), which is developing monoclonalantibodies for imaging and therapeutics, closed at $2.81, down6 cents, on Tuesday.

A shareholders meeting is scheduled for Oct. 31 to increasethe number of shares of authorized common stock.

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