NEW BRUNSWICK, N.J. -- Interferon Sciences Inc. (ISI) willreceive $9.4 million in cash and stock through an agreementannounced yesterday with its parent company, National PatentDevelopment Corp., and with The Purdue Frederick Co., RunhamCorp. and Banela Corp.
Runham and Banela are investing $3.6 million to purchase anaggregate of 878,000 shares of ISI common stock and 200,000warrants to purchase ISI common stock at $6 per share. Purduewill convert $1.98 million of advances made to ISI into ISIcommon stock. National Patent will purchase $3.8 million ofISI common stock with National Patent common stock.
As a result of these transactions, National Patent's holdings ofISI common stock will drop from 82 percent to 64 percent.Purdue, Runham and Banela, all of which are owned by thefamilies of Mortimer and Raymond Sackler, will hold acombined 16.6 percent of ISI stock. The other major equityholder in ISI is F. Hoffman-La Roche Inc., which owns 6.9percent. The public holds 12.8 percent of ISI's total of 8.5million shares of common stock outstanding.
ISI common stock (NASDAQ:IFSC) closed unchanged at $6.63 onWednesday.
ISI manufactures Alferon N Injection to treat genital warts.Purdue and affiliated companies have exclusive marketingrights to the product in the United States, Canada, Japan andseveral European countries.
(c) 1997 American Health Consultants. All rights reserved.