Spherix Announces Closing Of Private Placement Of $1.25 Million, Discusses Use Of Proceeds
BETHESDA, Md., Oct. 28, 2011 /PRNewswire/ -- Spherix Incorporated (NASDAQ: SPEX) – an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis, and providers of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies – today announced the closing of previously announced agreements to sell $1.25 million of shares of its common stock together with warrants to purchase additional shares of its common stock in a private placement transaction. Spherix has issued an aggregate of 532,559 shares of common stock at a price of $2.365 per share along with warrants to purchase an additional 532,559 shares of common stock at an exercise price of $2.24 per share. The warrants are exercisable immediately and expire in five years. The Company is required to file a resale registration statement within 30 days following the closing that covers the resale by the investors of the shares and the shares issuable upon exercise of the warrants.
The Company intends to use the net proceeds from the offering to continue the development of SPX-106T (the combination of D-tagatose and SPX-106), as well as for general corporate purposes.
"We are pleased to have completed this transaction, the proceeds of which will help fund additional studies to investigate SPX-106T as a therapy for high triglycerides and dyslipidemia," commented Dr. Claire L. Kruger, CEO of Spherix. "In addition, Biospherics has filed applications for U.S. and foreign patents on SPX-106T, and has also filed for a formulation of D-tagatose in combination with metformin. We also will continue with our strategy to diversify the product pipeline to add value to the Company."Rodman & Renshaw, LLC, a wholly-owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for the offering.
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