ADVENTRX Announces Financing (AMEX:ANX)

ADVENTRX Pharmaceuticals have announced that they have received license to purchase shares of its Series D convertible preferred stock pursuant to registered direct offering to institutional investors that will represent gross proceeds to ADVENTRX of US$ 11.3 million. ADVENTRX has planned to use all the financing received to fund the operations during the period when FDA will be reviewing their ANX-530 NDA and also use the amount for the development of ANX-514 and for other general corporate purposes.

The preferred stock is convertible into shares of ADVENTRX’s common stock if the investors want it and it will be at a conversion price of US$0.18805 per share and will accrue a 4.25 percent cumulative dividend for next 11 years. If the preferred convertible stock is converted at any time before October 2020, ADVENTRX will pay the holder an amount equal to the total dividend that will be accrued on the convertible preferred stock from the conversion date to October 2020.

The investors will also receive warrants to purchase an aggregate of 19,800,000 shares of ADVENTRX’s common stock. The warrants will have an exercise price per shares and investors can exercise it any time after the closing of the transaction and before the five years of the initial exercise date.