NovaDel Pharma Closes on $2,525,000 of Financing with ProQuest Investments LLC

FLEMINGTON, N.J.--(BUSINESS WIRE)--NovaDel Pharma Inc. (AMEX: NVD) announced today that on October 17, 2008, it closed on the remaining $2,525,000 (the “Subsequent Closing”) of its previously announced private placement of up to $4.0 million in secured convertible promissory notes and accompanying warrants with ProQuest Investments II, L.P., ProQuest Investments II Advisors Fund, L.P. and ProQuest Investments III, L.P. (the “Purchasers”). NovaDel had previously closed on $1,475,000 (the “Initial Closing”) of secured convertible promissory notes and accompanying warrants with the Purchasers on May 30, 2008. In the Subsequent Closing, the notes are convertible at a price of $0.235 per share. The Purchasers will also receive five-year warrants to purchase 6,446,809 shares of common stock with an exercise price of $0.294 per share.