AMBI completes $4.5 million private placement.TARRYTOWN, N.Y.--(BW HealthWire)--May 12, 1997--AMBI Inc. (Nasdaq:AMBI AMBI Associação Médica Brasileira Iridologia ) announced that it has completed a $4.5 million private placement of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". with three institutional investors, including AMBI's current largest institutional investor. After expenses, the company netted approximately $4.2 million. The preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. is classified as equity and is convertible into common stock based upon the price of the common stock and the date of conversion. Upon the satisfaction of certain conditions, the investors in this private placement will purchase an additional $3.5 million of preferred stock from the company. In connection with this placement, the company also issued warrants to purchase 529 thousand shares of common stock of AMBI at a price of $2.72 per share. The company has agreed to register the common stock issuable upon conversion of the preferred stock and exercise of the warrants. The proceeds will be applied toward the marketing of Cardia(TM) Salt Alternative, the development of AMBI's pharmaceutical candidates for the treatment of infectious diseases infectious diseases: see communicable diseases. , other programs of strategic interest to the company, and for general corporate purposes. AMBI develops and commercializes pharmaceutical and dietary products in the areas of infectious disease Infectious disease A pathological condition spread among biological species. Infectious diseases, although varied in their effects, are always associated with viruses, bacteria, fungi, protozoa, multicellular parasites and aberrant proteins known as prions. and hypertension. -0- The statements in this press release that are not historical facts are forward-looking statements based upon current expectations. Such forward-looking statements involve risks and uncertainties, the regulation of AMBI's business generally and the other risks and uncertainties set forth in "Risk Factors" and elsewhere in AMBI's Registration Statement on Form S-3 and the Prospectus dated June 18, 1996 constituting a part thereof and Form 10-Q Form 10-Q See 10-Q. for the quarter ended Dec. 31, 1996. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these and other factors. CONTACT: AMBI Inc., Tarrytown Investor Relations Investor relations The process by which the corporation communicates with its investors. , 914/345-6888 |
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