Genelabs to raise $10M in private placing

California, USA-based Genelabs Technologies has entered into an agreement for the sale of around 5.8 million shares of its common stock and warrants to but about 1.7 million shares to institutional and accredited investors for gross proceeds of $10.0 million.

The deal provides for Genelabs to sell the shares and warrants for $1.72 each (which includes the warrant purchase price of $0.125 per share underlying the warrants), with a warrant exercise price of $1.85 per share. The offering was priced prior to the close of market on February 8 and Genelabs expects to close the private placement financing on or about February 13.