June 22, 2012 | last updated June 22, 2012 11:23 am

Danbury insulin-maker Biodel raising $18.M

Danbury biopharma Biodel Inc. privately offered equity to raise about $18.5 million in fresh capital to sustain ongoing development and testing of fast-acting insulin for diabetes patients.

Biodel said new and existing investors bought about 7.9 million shares of its capital stock and warrants for another 2.7 million shares of its common stock. The placement is set to close Wednesday.

A portion of the shares issued will be shares of common stock and the rest in series B preferred stock. For each share being purchased, investors will receive a warrant to purchase 0.35 of a share of common at $2.66 each.

For each unit consisting of a share and warrant, the investors have agreed to pay $2.355, resulting in gross proceeds to Biodel, before deducting placement agents' fees and estimated offering expenses of approximately $18.5 million.

William Blair & Co. is sole lead placement agent. JMP Securities LLC is co-agent.

At mid-morning trading Friday, Biodel was up 4 cents, or 1.7 percent, to $2.35.

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