GYNEX RAISES $650,000 IN PRIVATE PLACEMENTGynex Inc. of Vernon Hills, N.Y., announced that it has raisednew equity capital of $650,000 through a private placement ofcommon stock and warrants.
The offering was placed with William Harris Investors Inc. ofChicago, the company said. As a result of the offering, Gynexsaid, Harris Investors now holds about 41 percent of thecompany's outstanding common stock (NASDAQ:GYNX). Also, allClass B shares have been converted to common stock, leavingthe company with one class of common stock outstanding. Thecompany will have 10.1 million shares outstanding after thetransaction.
Gynex said the proceeds will be used primarily to developOxandrin for pediatric growth disorders.
MEDCHEM REFINANCES DEBT
MedChem Products Inc. of Woburn, Mass., in a move to refinanceits debt, has entered into an agreement for a $3 millionrevolving line of credit with Silicon Valley Bank of San Jose,Calif. Interest accrues at a rate of prime plus 2.5 percent (11percent as of July 1).
Simultaneously, MedChem (AMEX:MCH) borrowed $1.9 millionfrom the bank and used the funds, together with cash on hand,to repay the remaining $3 million of principal and interestowed to Signal Capital Corp. The Signal loan, with a 13.75percent annual interest rate, would have matured in December.MedChem develops and markets biomedical products for use insurgical markets.
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