BUENA, N.J.--(BUSINESS WIRE)--IGI Laboratories, Inc. (AMEX: IG), a premier provider of topical formulation development, analytical, manufacturing and packaging services, today announced that it has completed a private placement of Series B-1 Convertible Preferred Stock, secured convertible promissory notes and warrants to purchase shares of Series B-2 Preferred Stock to certain investment funds affiliated with Signet Healthcare Partners, G.P., for an aggregate purchase price of $6,000,000.00. At closing, 253 shares of Series B-1 Convertible Preferred Stock and secured convertible promissory notes in the aggregate principal amount of $4,482,000 were issued. Each share of Series B-1 Convertible Preferred Stock is convertible into 14,634 shares of common stock, for an implied common stock conversion price of $0.41 per share. Upon stockholder approval of the transaction, the principal amount of the secured convertible promissory notes will convert into an aggregate of 747 shares Series B-1 Convertible Preferred Stock and the accrued interest will convert into additional shares of Series B-1 Convertible Preferred Stock. If stockholder approval of the transaction is not obtained, the secured convertible promissory notes will become due and payable and the warrants will become exercisable for an aggregate of 747 shares of non-voting Series B-2 Preferred Stock for a price of $6,000.00 per share. The Company expects to use the proceeds to support its pharmaceutical product development efforts, as well as other general corporate purposes.
