By Devika Patel
Knoxville, Tenn., June 17 - IR BioSciences Holdings, Inc. completed the second tranche of a $3 million private placement of secured convertible debentures for $1 million, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
IR drew down $2 million on Jan. 3. The remaining $1 million settled on June 12.
Yorkville Advisors, LLC, through YA Global Investments LP, is the investor.
YA Global also received warrants for 7.5 million shares, exercisable at $0.25 per share until Dec. 31, 2012.
The debentures in the first tranche will mature on Dec. 31, 2010 and bear interest at 8% per year. They will initially be convertible into common stock at $0.20 per share.
The debentures sold in June mature on May 31, 2011 and also bear interest at 8% per year. They will initially be convertible into common stock at $0.20 per share as well.
Interest will be payable quarterly.
After Dec. 31, 2009 or if IR fails to achieve certain milestones, the conversion price will become the lower of $0.20 per share and 80% of the lowest daily volume weighted average price during the five trading days immediately before conversion.
The milestones relate to preclinical studies and submission of an investigational new drug application.
Through its subsidiary ImmuneRegen BioSciences, Inc., IR is a biotechnology focused on development of countermeasures for bioterrorism threats.
| Issuer: | IR BioSciences Holdings, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $3 million
|
| Maturity: | Dec. 31, 2010 (for $2 million), May 31, 2011 (for $1 million)
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Initially $0.20; after two years or if IR fails to achieve milestones, lower of $0.20 and 80% of lowest daily volume weighted average price during five trading days before conversion
|
| Warrants: | For 7.5 million shares
|
| Warrant expiration: | Dec. 31, 2012
|
| Warrant strike price: | $0.25
|
| Investor: | YA Global Investments LP
|
| Settlement date: | Jan. 3 (for $2 million), June 12 (for $1 million)
|
| Stock symbol: | OTCBB: IRBO
|
| Stock price: | $0.08 at close Jan. 3
|
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