On Tuesday September 6, 2011, Genta Incorporated (OTC:GNTA) made an announcement stating the signing of decisive agreements for selling units comprising of Senior Secured Convertible Notes and warrants to purchase Senior Secured Convertible Notes, for up to $12.7 million in aggregate gross proceeds before fees and expenses. The other party to the agreement being institutional investors in a private placement.
Genta Incorporated,a biopharmaceutical company, focused on supplying innovative products for the treatment of patients with cancer, and is also engaged in the exclusive marketing of Ganite® in the U.S. for the treatment of symptomatic patients with cancer-related hypercalcemia that is resistant to hydration.
The company plans to utilize the amount derived from the financing to escalate the development of the Company’s small molecule pipeline, particularly late-stage registration studies of tesetaxel, the leading oral taxane in clinical development. The closure of the transaction is expected to be on or about September 9, 2011, subject to satisfaction of customary closing conditions. Rodman & Renshaw, LLC, a wholly-owned subsidiary of Rodman & Renshaw Capital Group, Inc. played the role of absolute placement agent for this offering.
Dr. Raymond P. Warrell, Jr., Genta’s Chief Executive Officer, stated that the respective financing, if fully accomplished would contribute towards the funding of company’s key projects including finalization of regulatory review for pivotal studies of tesetaxel and selection of a lead compound for IND filing from the oral gallium portfolio. He extended his gratitude towards the interest and enthusiasm of their investors regarding these important undertakings.
Shares of GNTA ended the day flat after moving higher sharply in early session on Tuesday.
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