Nastech raises $7.9 million

USA-based Nastech Pharmaceutical has entered into definitive agreements with new and existing investors to raise gross proceeds of just over $7.9 million through a registered direct offering. Under terms of the deal, the company will sell 4,585,260 shares of its common stock at $1.73 each. As part of the transaction, the investors also will receive warrants, with a seven-year term, to purchase 4,585,260 shares at an exercise price of $2.38 per share. The warrants will be exercisable beginning October 25, 2008.

In addition, the investors have the right to buy up to 1,375,578 shares at a price of $2.17 each during the 90-day period beginning October 25. If fully exercised, total gross proceeds would be nearly $3.0 million.