MADISON, Wisc., Nov. 5, 2012 /PRNewswire/ -- Novelos Therapeutics, Inc. (OTCQX: NVLT), a pharmaceutical company developing novel drugs for the treatment and diagnosis of cancer, today announced the closing of a private placement of equity securities to an affiliated entity of Renova Group for gross proceeds to Novelos of $2 million. The securities issued and sold in the private placement consisted of 2 million shares of Novelos' common stock, a warrant to purchase up to 1 million shares of common stock at an exercise price of $1.25 per share expiring in five years and a warrant to purchase up to 2 million shares of common stock at an exercise price of $1.00 per share expiring in 90 days. Novelos has earmarked the proceeds for the build-out of an in-house clinical-stage manufacturing facility for I-124-CLR1404 (LIGHT), our small-molecule, broad-spectrum, cancer-targeted imaging agent. The facility is expected to be completed in about one year and is expected to cost approximately $3 million. "We are very pleased to have a multi-billion dollar institutional investor of Renova's stature join our existing institutional and retail investors," said Harry Palmin, President and CEO of Novelos. "Having demonstrated initial positive LIGHT imaging data in lung and brain cancer patients and awaiting initial LIGHT imaging data across nine other solid tumor indications starting early next year, the build-out of an in-house clinical-stage manufacturing facility for LIGHT is a key strategic initiative as we move toward larger Phase 2 and pivotal LIGHT imaging trials. In the interim, we believe additional positive data will further establish proof-of-concept for LIGHT as a PET imaging agent in multiple cancer indications as well as guide selection of indications and trial designs for Phase 2 clinical trials with I-131-CLR1404 (HOT). We already have an operational in-house clinical-stage manufacturing facility for HOT, our small-molecule, broad-spectrum, cancer-targeted molecular radiotherapeutic that delivers cytotoxic radiation directly and selectively to cancer cells and cancer stem cells."