Biotechnology company sells units to finance its working capital needs
By Devika Patel
Knoxville, Tenn., Jan. 18 - Fibrocell Science, Inc. settled a private placement of series D convertible preferred stock on Dec. 27, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised a total of $1.48 million.
The company sold 1,480 preferreds at $1,000 per preferred.
Investors also received warrants for 2.96 million common shares, which are exercisable at $0.50 per share for five years. The strike price reflects a 1.96% discount to the Dec. 23 closing share price of $0.51.
Each 6% preferred is convertible into common shares at an initial conversion price of $0.50 per share, which is also a 1.96% discount to the Dec. 23 closing share price.
Proceeds will be used for working capital.
Fibrocell is a biotechnology company based in Exton, Pa.
| Issuer: | Fibrocell Science, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $1.48 million
|
| Shares: | 1,480
|
| Price: | $1,000
|
| Dividends: | 6%
|
| Conversion price: | $0.50
|
| Warrants: | For 2.96 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Dec. 27
|
| Stock symbol: | OTCBB: FCSC
|
| Stock price: | $0.55 at close Dec. 27
|
| Market capitalization: | $13.24 million
|
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