Ribi ImmunoChem Research Inc. said Thursday that it hascompleted a $5 million private placement of stock andwarrants with D. Blech & Co. Inc.
David Blech and other investors acquired 1.7 million units ofstock and warrants at $3 per unit. Each unit consists of oneshare of stock and one warrant to purchase a share of stock for$3. The warrants are exercisable for five years after the issuedate.
The shares issued represent 14.5 percent of the Hamilton,Mont., company's stock outstanding. If the warrants areexercised, the total net capital contribution to Ribi would be$9.7 million, and the shares issued would represent 25 percentof Ribi's stock outstanding.
D. Blech & Co. may nominate one person to Ribi's board ofdirectors and must maintain a specified holding of Ribi's stock(NASDAQ:RIBI) to continue to have such rights.
Stock of Ribi, which develops immunostimulants to preventand treat human and animal diseases, closed at $4.38, down 25cents, on Thursday.
(c) 1997 American Health Consultants. All rights reserved.