Oramed Pharmaceuticals Inc. (Bulletin Board:ORMP); DAX:OJU), which is developing an oral insulin capsule, and which is traded on the Bulletin Board at a market cap of $29 million, announced a $5.6 million private placement today, or $4.97 million, net of finder's fee, priced at $0.37 per unit. The fund raising was in order to finance clinical trials for the company's leading product.
Each unit includes one share of stock. Unit holders were also issued one warrant for each two shares of stock purchased, at an exercise price of $0.50 per share for five years. A total of 13,647,866 shares of common stock and 6,823,938 warrants were issued. The Company also issued 13,514 shares of common stock and 6,757 common stock purchase warrant, and will also issue 152,939 shares of common stock and 76,470 common stock purchase warrant as a finder's fee.
In addition, on October 30, 2012, the company issued 2,390,057 shares of common stock to D.N.A Biomedical Solutions Ltd., valued at approximately $628,630, for a warrant to purchase up to 21,637,611 ordinary shares of D.N.A.
"The funds from this raise, which was done at a premium to our current and recent trading price, will afford the company the necessary capital as it approaches Phase 2 trials on its oral insulin capsule in the US. We intend to file an IND (Investigative New Drug) application for the trial with the FDA in the upcoming weeks," said Oramed CEO Nadav Kidron.
Most of the investors in the private placement are existing shareholders, but there are also new ones. The placement was led by Regals Capital Management of New York, an existing investor.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2012
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