Nova Pharmaceutical Corp., a developer of treatments forcentral nervous system disorders and inflammation, said it hasraised $7.35 million in a private placement with institutionalinvestors.

The investors were Chancellor Capital Management Inc.;Financial Strategic Health Sciences Portfolio, one of thefinancial funds managed by Invesco Funds Group; and AmericanFund Advisors. Lead manager was Lehman Brothers of New York.Prime Charter Ltd., also of New York, was co-manager.

Of the funds raised, $2.5 million was an equity investment. TheBaltimore company (NASDAQ:NOVX) issued 545,000 new sharesof stock plus 90,000 warrants. After the placement, Nova has27.4 million shares of common stock outstanding.

The other $4.8 million consisted of senior subordinated debt,to which were attached 1.1 million warrants.

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