NovaDel Pharma (NVD) Receives Commitment From Seaside 88 to Purchase Up To 13 Million Shares

June 29, 2009 10:19 AM EDT

NovaDel Pharma Inc. (NYSE AMEX: NVD) entered into an agreement with Seaside 88, LP. Under the terms of the agreement and subject to the approval of the NYSE AMEX, Seaside has committed to purchase up to 13.0 million NovaDel common shares, in a series of closings every two weeks in the amount of 500,000 shares each for a total of up to 26 purchases. NovaDel and Seaside expect to close the first sale of 500,000 shares after the approval of the NYSE AMEX.

The purchase price for all closings executed under the agreement is determined by applying a 13% discount to a volume-weighted-average price (VWAP) of NovaDel's common stock. The price of the shares to be sold at today's initial closing is based on NovaDel's share price on the day prior to close. The pricing of all subsequent closings will be based on NovaDel's share price for the 10 trading days preceding each closing. The scheduled closings will not take place if the Company's VWAP for the 3 preceding trading days is less than $0.25. NovaDel has the right to discontinue the agreement between the 6th and 7th closings, based on the Company's assessment of its financing needs at that time.

NovaDel Pharma Inc. (NovaDel) is a specialty pharmaceutical company developing oral spray formulations for a range of marketed pharmaceuticals. [SM]

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