Boston, MA 08/21/2014 (wallstreetpr) – Adamis Pharmaceuticals Corp (NASDAQ:ADMP) said that it completed the private placement. Under the financial transaction, it has issued Series A Convertible Preferred Stock shares amounting to 1,418,439. The issue is made to a fundamental healthcare institutional fund. Adamis has got gross cash proceeds of around $5,000,000.
Additional information
The conversion ratio of preferred stock into common stock stands at 1-to-1 at the option of the investor. There is no preference to the common shares. Adamis Pharmaceuticals Corp (NASDAQ:ADMP) even issued the investor warrants to buy a number of common stock shares equivalent to preferred stock shares. The warrants issued by Adamis are exercisable for a time-period of five years. The exercise price stands at $3.40 per share. The warrants issued by Adamis are callable for cash.
The use of funds
The proceeds resulting from the completion of Adamis private placement will be used for financing the general corporate purposes. There will be no limitation on Adamis to help prepare for its planned sales and marketing launch of epinephrine pre-filled syringe product. Adamis Pharmaceuticals Corp (NASDAQ:ADMP) has filed an application for its new drug with FDA as per section 505(b) (2) of the Food, Drug & Cosmetic Act. It is related with the marketing approval of the PFS product. It is for the emergency treatment of Type I allergic reactions. It also covers the reactions of anaphylaxis. The application was filed in May 2014 and FDA accepted the application for review on 29 July, 2014.
The management view
Dr. Dennis J. Carlo, President and the CEO of Adamis Pharmaceuticals Corp (NASDAQ:ADMP) said that the new private placement transaction will bring in additional benefits to the Adamis shareholders. The Adamis management continuously reviews the opportunities that help it to raise additional capital for accelerating the development activities and helps in completion of project pipeline. The net proceeds will help Adamis to support the planned launch of its first product.
