Encorium Group Inc., a pharmaceutical contract research firm based in Wayne, said today two institutional investors have agreed to pump in $5 million to support Encorium's expansion and possibly acquisitions.
The purchase agreements with the unidentified investors were set at $2.86 per share and additional options at $4.12 per share.
Encorium's stock was trading at $3.47 on the Nasdaq this morning, down 3 percent from yesterday and down 46 percent from its one-year high.
Encorium said in a statement it "expects to use the net proceeds to fund organic expansion and, as opportunities arise, for complementary acquisitions, as well as for general corporate purposes and working capital."
In its statement, Encorium chief executive office Kenneth M. Borow was quoted as saying the investment demonstrates "confidence these new investors have placed in the future of Encorium. We believe this financing will help to accelerate our business plan and put the company in a strong position to support the next phase of its growth."