(Source: Business Wire)
Northfield Laboratories Inc. (Nasdaq: NFLD) announced today that it has completed the previously announced sale of shares of convertible preferred stock pursuant to a registered direct offering to a single institutional investor, representing gross proceeds of approximately $1.4 million. The preferred stock is convertible into shares of Northfield's common stock at the option of the investor at a price of $0.265 per share.
The investor also received warrants to purchase 5,404,652 shares of Northfield's common stock. The warrants have an exercise price of $0.53 per share, and are exercisable at any time after the six-month anniversary of the closing of the transaction and before the fourth anniversary of such initial exercise date. Northfield plans to use the net proceeds from the offering for general corporate purposes, including general and administrative expenses and expenses in connection with the regulatory review of Northfield's PolyHeme® investigative human hemoglobin-based red cell substitute product.
The shares and warrants were sold by Northfield pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission dated September 1, 2006. Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NasdaqGM: RODM - News), acted as the exclusive placement agent for the transaction.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities may only be offered by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from the SEC's website at www.sec.gov or from Rodman & Renshaw, LLC at 212-536-0550.
About Northfield Laboratories
Northfield Laboratories is a leader in developing a hemoglobin-based oxygen-carrying red blood cell substitute. The initial indication we are seeking for our investigational product PolyHeme is the treatment of life-threatening red blood cell loss when an oxygen-carrying fluid is required and red blood cells are not available. PolyHeme is a solution of chemically modified human hemoglobin that requires no cross-matching and is therefore compatible with all blood types. It has an extended shelf life in excess of 12 months. For further information, visit http://www.northfieldlabs.com.
