Two hedge funds purchased privately placed convertible securities in Synova Healthcare Group. The company raised $15 million through the issuance of 6.5% senior convertible promissory notes. Sandell Asset Management invested $2 million, while Plainfield Asset Management, which is run by former D.E. Shaw honcho Max Holmes, went in for $5 million, according to a filing with the Securities and Exchange Commission. The notes mature in 2012 and carry a strike price of $1 per share.
In addition, the company also issued warrants redeemable to the funds at $1 per share. Plainfield received warrants to purchase 5.5 million shares, while Sandell received warrants for 2.2 million shares. The rest of the offering was filled by banks and other parties. Shares of Synova were trading around $1.15 at press time.
Synova raised the capital in connection with its acquisition of Allendale Pharmaceuticals. A Sandell official declined to comment and calls to Synova and Plainfield were not returned by press time.