Gensia Sicor Placement Should Raise $35 Million

Gensia Sicor Inc. said it expects proceeds of about $35 million from the sale of securities units.

The Irvine pharmaceuticals company said it privately placed about 4 million units at $4 a unit. Each unit includes one common share and a warrant to purchase one-tenth of a common share at $5.75. The company has received written purchase agreements for an additional 2.2 million units expected to close June 10.

Gensia Sicor said it also expects its president and chief executive, Carlo Salvi, to buy 2.5 million units for $10 million. The company plans to repay a $10-million loan from Salvi, eliminating about $800,000 in annual interest payments.

Gensia Sicor plans to use the proceeds to retire short- and long-term debt and for general corporate purposes.

The stock closed Friday at $4.25, off 6 cents a share. The company will have about 89 million shares outstanding after shares for the private placement are issued.