WORCESTER, Mass. (AP) -- Generex Biotechnology Corp. said Tuesday it will issue 8 percent convertible notes and warrants to raise nearly $20.7 million in gross proceeds.

The securities will be issued in a private placement with existing institutional investors.

The notes and warrants convert to common stock at an initial price of $1.21. That is 110 percent of the closing bid price of the common stock on Monday.

Funds raised will be used to help fund late-stage clinical trials of oral insulin product Generex Oral-lyn in the U.S., Canada and Europe.

The company, which has developed a way of orally taking drugs formerly administered intravenously, will seek shareholder approval for the transaction at its May 27 annual meeting.

Rodman & Renshaw LLC is the exclusive placement agent for the transaction.