NEW YORK (GenomeWeb News) – Interleukin Genetics today said that it has received commitments from certain institutional investors to purchase $5.3 million of the firm's stock through a direct placement.
Under the agreements, Interleukin said that it will sell in aggregate 4,375,002 shares of its common stock and warrants to purchase up to 1,750,000 additional shares of common stock. Each unit will be sold for $1.20 and consist of one share of common stock and a warrant to purchase 0.40 of a share of common stock.
The warrants will be exercisable at an exercise price of $1.30 per share beginning immediately after issuance and will expire five years from the date they are first exercisable, said the Waltham, Mass.-based genetic test maker.
Interleukin expects that its net proceeds will be $4.9 million after deducting placement agent fees and other offering expenses. It did not disclose its intended uses for the funds.
In early trade on the American Stock Exchange, shares of Interleukin tumbled 20 percent to $1.20. This follows yesterday's 16 percent increase in the share price, after Interleukin said that the results of a retrospective study suggest that individuals who base their diet on genotype could potentially benefit from the firm's weight management genetic test.