ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today announced that it has completed the previously announced sale of shares of its 5% Series C convertible preferred stock pursuant to a registered direct offering to a single institutional investor, representing gross proceeds of approximately $0.9 million.
Twelve and one-half percent, or $115,250, of the gross proceeds will be placed in an escrow account, which amounts will be released to make the dividend and other payments described below.
The preferred stock is convertible into shares of ADVENTRX's common stock at the option of the investor at a price of $0.13 per share and will accrue a 5% cumulative dividend until February 10, 2012. If the convertible preferred stock is converted at any time prior to February 10, 2012, ADVENTRX will pay the holder an amount equal to the total dividend that would accrue on the convertible preferred stock from the conversion date through February 10, 2012, or $125 per $1,000 of stated value of notes converted, less any dividend payments made with respect to the converted convertible preferred stock.
ADVENTRX plans to use the net proceeds from the offering to fund activities necessary to advance ANX-530 (vinorelbine emulsion) toward commercialization in the U.S. and to continue development of ANX-514 (docetaxel emulsion), and for general corporate purposes.
The shares were sold by ADVENTRX pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission ("SEC"). A prospectus supplement relating to the offering was filed with the SEC on August 5, 2009. Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NasdaqGM: RODM), acted as the exclusive placement agent for the transaction.