Ribi ImmunoChem Research Inc. said Friday that it has agreedto amend an agreement with D. Blech & Co. Inc. to enable Blechto privately place Ribi units under more attractive terms.
The 1.66 million Ribi units, priced at $3 per unit, each consistof one share of stock and a warrant to purchase a share ofstock.
Ribi now has sweetened the deal, lowering the warrantexercise price to $3 per share. "The volatility of the market ismaking investors more cautious," said Ronald H. Kullick, vicepresident and legal counsel for Ribi.
Under the original agreement, the warrant exercise price was$4, which would have been reduced to $3 if the company'scommon stock (NASDAQ:RIBI) didn't trade at an average closingprice of $8 a share for at least 20 consecutive trading days bythe third anniversary of the issue date. The new agreementimmediately lowers the price.
Ribi stock closed at $4, down 50 cents, on Friday.
The units are part of a total of 2 million units that theHamilton, Mont., developer of immunostimulants madeavailable to Blech. Blech entered into an agreement in March topurchase the first 333,000 units.
In May, Ribi raised $1.7 million in another private placementagreement, with S.R. One Ltd., for 566,667 units. -- KarenBernstein
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