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NeoTherapeutics Sells 500,000 of Its Shares

May 03, 2000|Dow Jones

NeoTherapeutics Inc., an Irvine developer of treatments for neurological diseases and conditions, said Tuesday it sold 500,000 shares of common stock at $14 each to a Canadian investment company.

The transaction, valued at $7 million, includes a five-year warrant for the investor to purchase up to 125,000 common shares at $17.50 a share, NeoTherapeutics said.

The company said it will use proceeds from the sale to help fund the clinical development of Neotrofin, a potential treatment for Alzheimer's disease, and other products, and to expand its NeoGene Technologies Inc. unit.

NeoTherapeutics had about 9.5 million shares outstanding before the transaction.

The stock closed Tuesday at $13.88, up 75 cents a share, in Nasdaq trading.

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