March 9, 2010 (FinancialWire) — Genta Inc. (OTCBB: GETA) said it has entered into definitive agreements with institutional investors for a private placement of convertible notes totaling $25 million in gross proceeds.

The transaction is scheduled to close on or about March 10.

The company said it will use the proceeds of the financing to ensure adequate followup to determine overall survival results from Genta’s recently completed Phase 3 trial of Genasense Injection plus chemotherapy as first-line treatment of patients with advanced melanoma and to accelerate development of the company’s pipeline products, among other uses.

The $25 million of convertible notes have a 3-year term and will be initially convertible into shares of Genta common stock at a conversion rate of 100,000 shares of common stock for every $1,000.00 of principal that is converted.

The notes bear an annual interest rate of 12%, payable semi-annually.

New Jersey-based Genta is a biopharmaceutical company with a product portfolio that is focused on delivering products for the treatment of patients with cancer.

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