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Star Scientific up after CEO, holders invest $20M through exercise of warrants

Star Scientific (STSI), a company that develops and sells tobacco-derived products, disclosed earlier in a regulatory filing that CEO Jonnie Williams and several long term shareholders invested $20M in the company through the exercise of outstanding warrants. The gross proceeds from the exercise of the Prior Warrants and Williams’ exercise of his warrants are $20M. The exercise will result in the issuance of 19.5M shares of Common Stock and the cancellation of warrants exercisable for 19.5M shares of Common Stock. Williams also announced that he would reduce his salary to $1 per month starting January 2013 until the company becomes profitable. In early morning trading, Star Scientific shares rose 20c, or 12.42%, to $1.81.