Generex Biotechnology Raises $2.5 Million Through Private Placement
TORONTO -- Generex Biotechnology Corporation (Nasdaq: GNBT) announced today that it has raised $2,500,000 through a private placement of common stock and warrants to institutional investors. The financing was completed through the issuance of 1,700,680 shares of stock and warrants to purchase 425,170 shares of Generex's common stock at $1.86. The transaction was priced based upon the closing price for the stock on December 18, 2003, the date prior to signing the definitive agreements, with an additional $.04 as consideration for each warrant. The company expects to utilize the proceeds from the transaction, which was completed with existing institutional investors, to accelerate clinical development activities and for working capital and other general corporate purposes.
Generex is required to register for resale the shares issued in the private placement and the shares issuable upon exercise of the warrants no later than April 4, 2004. Pursuant to the terms of an Additional Investment Right, the investors have the right to purchase up to the same number of shares and warrants, at the same price, within sixty (60) days after the effectiveness of the registration statement.
"We believe this additional commitment from our existing shareholders represents another strong endorsement of Generex's Oralin(TM) technology, our upcoming clinical trials and the overall direction of the company," said Anna E. Gluskin, President & Chief Executive Officer of Generex. "This commitment will help us fund our upcoming clinical activities and help us to establish additional strategic relationships to realize opportunities to further develop our promising technologies."
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