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NovaDel Announces 7 Million Private Placement

The financing was led by ProQuest Investments and included the Caisse de depot et placement du Quebec and others.Flemington”s NovaDel Pharma (AMEX: NVD) said Friday it raised $7 million from the sale of common stock and warrants in a private placement to selected institutional and accredited investors.

The financing was led by ProQuest Investments and included the Caisse de depot et placement du Quebec and others.

Under the terms of the financing, NovaDel sold 6.7 million shares of common stock at $1.05 per share and granted the investors warrants to purchase 2.4 million shares of common stock at an exercise price of $1.30 per share. The warrants are exercisable for a five-year period commencing upon the six month anniversary of the closing date of the offering.

“The additional funds will allow us to advance the clinical development of our unpartnered proprietary lingual-spray products toward pivotal trials and NDA submissions under 505(b)(2),” Dr. Gary A. Shangold, president and CEO of NovaDel, said.

Novadel Pharma is a development-stage biopharmaceutical company engaged in the development of novel application drug-delivery systems for presently marketed prescription and over-the-counter drugs. The company”s delivery systems are lingual sprays enabling drug absorption through the oral mucosa and more rapid absorption into the bloodstream than presently available oral-delivery systems.

At the close of trading, NovaDel shares were up $0.02 to $1.20.