Novelos Thera completes Cellectar buy and $5.1 million financing

USA-based Novelos Therapeutics (OTCBB: NVLT.ob), a developer of novel drugs for the treatment and diagnosis of cancer, says it has completed its acquisition of Cellectar, a Wisconsin-based drug development company, in a stock-for-stock transaction.

Cellectar shareholders received as consideration shares constituting around 85% of the outstanding shares of Novelos common stock post-acquisition, or 17,001,638 shares of Novelos common stock, after giving effect to a 1 for 153 reverse stock split effected by Novelos following the close of market on April 8, 2011.

Immediately following the acquisition, Novelos sold units consisting of an aggregate of 6,846,537 shares of its common stock and warrants to purchase an aggregate of 6,846,537 shares of its common stock, for gross proceeds of just over $5.1 million. Each unit consists of one share of common stock at $0.75 per share and a warrant to purchase one share of common stock. The warrants have an exercise price of $0.75 per share and expire in March 2016.