Manhattan Pharma completes $8.6M placing

Manhattan Pharmaceuticals, a US development-stage drug firm, has completed a private placement of common stock and warrants with certain institutional and other accredited investors. The company expects to use the net proceeds for general corporate purposes.

Manhattan sold about 10.2 million shares at a price of $0.84 each, including the sale of around 56,000 shares to an affiliate of the company at $0.90 per share (the closing price of the company's common stock on March 29). In addition, the company issued to the investors five-year warrants to purchase an aggregate of approximately 3.6 million shares at an exercise price of $1.00. The aggregate gross proceeds of the offering are about $8.6 million and net proceeds are expected to be approximately $7.9 million. Paramount BioCapital served as placement agent for the transaction.