EpiCept raises $10M in private placement

New Jersey, USA-based EpiCept Corp says that it has entered into definitive agreements with institutional investors to raise $10.0 million in gross proceeds through the sale of the firm's common stock and warrants.

In connection with this, EpiCept will issue around 5.1 million shares of its common stock at $1.95 each and five-year warrants to purchase up to about 2.56 million of common stock at an exercise price of $2.93 per share. The warrants will not become exercisable until six months after the closing. Following the consummation of the private placement, EpiCept will have approximately 37.5 million shares of common stock outstanding.

The company also agreed to file a registration statement with the Securities and Exchange Commission to register the shares of common stock issued in the private placement and the shares underlying the warrants for possible resale by the investors.