TAMPA, Fla.--(BUSINESS WIRE)--Accentia Biopharmaceuticals, Inc. (NASDAQ: ABPI) entered into a definitive agreement for a convertible debenture financing with several institutional investors under which $24.7 million in principal amount of debentures were issued for gross cash proceeds of $20.0 million before placement fees and other costs. Additionally, $4.7 million of the debentures were issued in exchange for an agreement by investors in the Company’s September 2006 convertible debenture financing to convert over a six-month period an aggregate of $13.0 million in principal amount of the convertible debentures issued by the Company in September 2006. The proceeds of the new financing will be used to strengthen the Company’s cash position, support ongoing clinical development programs, and continue the Company’s strategy of acquiring late stage drug candidates that can benefit from the 505(b)(2) regulatory pathway. The funding, in which Rodman & Renshaw, LLC acted as the placement agent, is expected to be completed by March 1, 2007.
