April 2, 2010 (FinancialWire) — NovaDel Pharma Inc. (OTCBB: NVDL) said that it has entered into a securities purchase agreement to raise around $1.5 million in gross proceeds through the sale of around nine million shares of its common stock to selected institutional investors at a price of $0.165 per share.

The investors will also receive five year warrants to purchase approximately 4.5 million shares of common stock at an exercise price of $0.25 per share. In addition, the investors will receive six month warrants to purchase an around 3.0 million additional shares of common stock at an exercise price of $0.25 per share.

NovaDel Pharma said it expects to receive total proceeds, net of offering expenses and placement agency fees, of around $1.4 million.

The offering will close on March 31, 2010. The company said it will use the net proceeds of the financing primarily for the continued development of Duromist, its oral spray formulation of sildenafil citrate for erectile dysfunction.

New Jersey-based NovaDel Pharma is a specialty pharmaceutical company developing oral spray formulations for a range of marketed drugs.

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