By Devika Patel
Knoxville, Tenn., March 5 - Lotus Pharmaceuticals, Inc. negotiated a $10 million two-year standby equity distribution agreement with YA Global Investments, LP on Wednesday, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company may sell stock in up to $200,000 tranches at 93% of the lowest daily volume-weighted average price of its common stock during the five consecutive trading days after the date the company provides an advance notice to YA Global, subject to a minimum price of $0.87.
YA Global also received 228,117 shares as a commitment fee of $300,000 in connection with the deal.
Lotus, based in Boca Raton, Fla., develops over-the-counter medications for distribution to the People's Republic of China.
| Issuer: | Lotus Pharmaceuticals, Inc.
|
| Issue: | Standby equity distribution agreement
|
| Amount: | $10 million
|
| Tenor: | Two years
|
| Price: | Higher of 93% of lowest daily volume-weighted average price of stock and $0.87
|
| Warrants: | No
|
| Investor: | YA Global Investments, LP
|
| Fees: | 228,117 shares
|
| Settlement date: | March 3
|
| Stock symbol: | OTCBB: LTUS
|
| Stock price: | $1.41 at close March 3
|
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