Skystar Bio closes direct stock offering

|About: Skystar Bio - Pharmace... (SKBI)|By:, SA News Editor

Skystar Bio-Pharmaceutical Company (SKBI -6.3%) raises $5M in a direct offering of stock and warrants to an institutional investor. Under the terms of the agreement, the investor will purchase 790,514 shares of common stock at $5.06 per share and warrants to purchase up to 197,629 shares of common for an aggregate price of $4M plus 1,000 shares of convertible preferred stock and warrants to purchase 49,407 shares of common stock for an aggregate price of $1M.

The conversion price of the preferred stock is $5.06 and the exercise price of the warrants is $6.25. The warrants are exercisable six months following issuance and will expire 12 months from the initial exercise date.

Net proceeds will be used for acquisitions, licenses of new vaccine and aquaculture products, R&D and general corporate purposes.