Pharmos Corporation Completes Initial Closing of Private... ( ISELIN N.J. Jan. 3 /- Pharmos Cor...)

Pharmos Corporation Completes Initial Closing of Private Placement

Date:1/3/2008

ISELIN, N.J., Jan. 3 /PRNewswire-FirstCall/ -- Pharmos Corporation (Nasdaq: PARS) announced today that it has completed an initial closing of a private placement of its 10% Convertible Debentures due November 2012. At the initial closing the Company issued $4,000,000 principal amount of the Debentures, at par, and received gross proceeds in the same amount.

The purchasers consisted of certain existing investors in the Company, namely Venrock Associates, New Enterprise Associates, Lloyd I. Miller, III and Robert Johnston.

The Debentures mature the earlier of November 1, 2012 or the sale of the Company. The Debentures, together with all accrued and unpaid interest thereon, may be repaid, without premium or penalty, commencing on November 1, 2011.

Starting on November 1, 2009 (or earlier sale of the Company), any outstanding Debenture may be converted at the option of the holder. The conversion price is fixed equal to $0.70 per share.

The Debentures bear interest at the rate of 10% per annum, payable semi-annually either in cash or common stock of the Company at the option of the Company.

Under the terms of the offering, the Company may raise gross proceeds up to an aggregate of $8,000,000 from the sale of Debentures in the placement (including the Debentures issued at the initial closing). A second closing is targeted for no later than 45 days from the date of the initial closing.

The proceeds will be used for working capital, in particular for the ongoing Phase 2b trial for dextofisopam.

The securities issued and issuable in the offering have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable
'/>"/>

0

GOOD

Page: 1 2
Related biology technology :

1. Pharmos Corporation Announces Board and Management Changes
2. Pharmos Corporation Announces President & COO Alan L. Rubino to Leave Company
3. Pharmos Corporation to Present at the 2007 RBC Capital Markets Healthcare Conference
4. Pharmos Corporation Reports 2007 Third Quarter Results
5. Pharmos Issues Letter to Shareholders
6. Environmental Tectonics Corporation Announces Sale of Monoplace Hyperbaric Chambers
7. CuraGen Corporation Announces Appointment of Sean Cassidy as CFO
8. LifeCell Corporation Schedules 2008 Financial Guidance Release and Conference Call; January 7, 2008 at 10:00 A.M. Eastern
9. Shire Expands its Gastrointestinal Portfolio Through In-Licensing Celiac Disease Phase 2 Product From Alba Therapeutics Corporation
10. Alba Therapeutics Corporation and Shire plc Enter Into $325 Million ex-US, ex-Japan Licensing Agreement to Develop and Commercialize AT-1001
11. FMC Corporation and Pronova BioPharma Announce Agreement To Develop New Alginate-Based Capsule Products

Post Your Comments:

Pharmos Corporation Completes Initial Closing of Private...( ISELIN N.J. Jan. 3 /- Pharmos Cor...)