Interleukin Genetics Inc. (NYSE:ILI) drummed up about $5.3 million in commitments from institutional investors in a registered direct offering.
The Waltham, Mass.-based genetic test maker said it expects to pull in $4.9 million after deducting fees and expenses for placement agent Rodman & Renshaw LLC for the sale of roughly 4.4 million shares of stock and warrants for the purchase of up to about 1.8 million more, according to securities filings. Each unit, comprised of one share and a warrant for 0.4 of a share, went for $1.20 in the offering. Interleukin’s stock was trading at $1.19 in mid-day trading March 5.
The company said the warrants will be worth $1.30 each and will expire in five years.
Interleukin, which was named as one of eight defendants in a patent infringement lawsuit filed by Australian competitor Genetic Technologies Ltd., registered $75 million worth of securities in early January, after posting a $2.5 million net loss for the third quarter ending Sept. 30, 2009. The company did not indicate how it planned to use the new influx of cash, but it’s likely aiming to fund ongoing operations with the infusion.