BETHESDA, Md., Jan. 20, 2011 /PRNewswire/ — Spherix
Incorporated (Nasdaq:
SPEX), an innovator in biotechnology for therapy in diabetes,
metabolic syndrome and atherosclerosis; and providers of technical
and regulatory consulting services to food, supplement,
biotechnology and pharmaceutical companies, today announced that it
has entered into definitive agreements to sell $2.77 million of
shares of its common stock and warrants to purchase shares of its
common stock in a registered direct offering to institutional
investors. Spherix will issue an aggregate of 4,269,000
shares of common stock to the institutional investors together with
warrants to purchase an additional 2,134,500 shares of common
stock.
Each investor will receive one share of common stock and a
warrant to purchase 0.5 shares of common stock for a purchase price
of $0.65. The warrants have an exercise price of $0.80 per
share, and are exercisable 6 months after issuance and terminate 60
months after the date of issuance.
The Company intends to use the net proceeds from the offering to
continue the development of Dtagatose for diabetes and
triglycerides, as well as for general corporate purposes.
The closing of the offering is expected to occur on January 24,
2011, or earlier, subject to customary closing conditions, at which
time Spherix will receive the cash proceeds and deliver the
securities.
Rodman & Renshaw, LLC, a wholly-owned subsidiary of Rodman
& Renshaw Capital Group, Inc. (Nasdaq:
RODM), acted as the exclusive placement agent for the
offering.
The common stock and warrants are being offered by Spherix
pursuant to an effective registration statement on Form S-3 filed
with the Securities and Exchange Commission (SEC). A prospectus
supplement relating to the offering
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