Chantal Pharmaceutical announces private placement.LOS ANGELES--(BUSINESS WIRE)--Aug. 8, 1995--Chantal Pharmaceutical Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHTL) announced today that pursuant to a private offering commenced and priced on July 24, 1995, it had sold 1 million shares of common stock and 500,000 shares of Series C Voting 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". . The net proceeds to the company, after payment of placement fees of 7.5 percent, are $6,798,750. The common shares are subject to immediate registration, subject to an agreement by investors not to sell for at least 90 days following the effectiveness of the company's pending registration statement. The preferred shares will be convertible into common stock at the rate of one common share for each share of preferred at such time as the company's certificate of incorporation certificate of incorporation n. some states issue a certificate to prove a corporation's existence upon the filing of Articles of Incorporation. In most states the Articles are sufficient proof. is amended to increase the number of authorized shares of common stock to at least 30 million and the common shares are registered. The preferred shares have a liquidation preference of $1 and are entitled to vote and receive dividends on the basis of the common shares into which they are convertible. All of the investors in the offering are accredited investors as such term is defined in Regulation D under the Securities Act of 1933. The proceeds of the offering will be used for general corporate purposes. Chantal Pharmaceutical Corp. is the developer and exclusive marketer of the patented Ethocyn compound shown in clinical tests to optimize the skin's natural ability to produce elastin elastin /elas·tin/ (e-las´tin) a yellow scleroprotein, the essential constituent of elastic connective tissue; it is brittle when dry, but when moist is flexible and elastic. e·las·tin n. fiber and minimize the appearance of fine lines and wrinkles. Ethocyn is the active ingredient in a full line of Ethocyn-featured Chantal Skin Care products now available from the company. The company has executive offices in Los Angeles, with laboratories in Kaiserslautern, Germany. The company recently acquired a laboratory facility in Arizona, which is expected to be functional in the fall of this year. This new laboratory will triple Chantal's production capacity. In addition to marketing Ethocyn, the company is engaged in ongoing research on other scientifically-based cosmetic products and in the research and development of topical and systemic pharmaceutical and therapeutic compounds for the treatment of androgen mediated disorders such as acne, hirsutism Hirsutism Definition Excessive growth of facial or body hair in women is called hirsutism. Description Hirsutism is not a disease. The condition usually develops during puberty and becomes more pronounced as the years go by. , male pattern baldness male pattern baldness n. A progressive, diffuse loss of scalp hair in men that begins in the twenties or early thirties, depends on the presence of the androgenic hormone testosterone, and is caused by a combination of genetic and hormonal factors. , benign prostate hypertrophy hypertrophy (hīpûr`trəfē), enlargement of a tissue or organ of the body resulting from an increase in the size of its cells. Such growth accompanies an increase in the functioning of the tissue. and the treatment of certain cancers. CONTACT: Martin E. Janis & Co. Inc. Bev Jedynak, 312/943-1100 |
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