Pharmatec Inc., which is developing a carrier system fordelivering drugs across the blood-brain barrier, on Tuesdaysaid it will raise $5.5 million in a private financing withinvestor David Blech.
In exchange for the funds, Pharmatec will issue 3,666,667units composed of two new shares of common stock and oneclass A warrant. The warrant will be exercisable at $1.25 for asix-year period to purchase a unit consisting of a share ofcommon and one class B warrant.
The class B warrant may be exercised for $1.75 to purchase anadditional share of common for up to seven years from the dateof the original unit placement.
The Gainsville, Fla., company, which also has developedcyclodextrins for enhancing the solubility and stability of avariety of drugs, has about 4.2 million shares outstanding.
D. Blech & Co. Inc. will act as placement agent, althoughPharmatec said it anticipated that Blech and his affiliateswould buy most of the offering. The deal is subject to a finalstock purchase agreement and is expected to close by year-end.The stock (NASDAQ:PHTC) closed at $1.50, up 56 cents, onTuesday.
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