By Angela McDaniels
Tacoma, Wash., July 1 - Medasorb Technologies Corp. raised $4.28 million from a private placement of convertible series B preferred stock, according to an 8-K filing with the Securities and Exchange Commission.
The company sold 42,750 preferreds for $100 each to a group of 10 investors led by NJTC Venture Fund SBIC, LP.
Dividends on the preferreds accrue at 10% per year and are payable quarterly in additional shares of series B preferred stock. After five years, the dividends will be payable in cash.
The conversion rate is one share of common stock for each $0.035 of amount of preferreds.
The preferreds are putable for par plus accrued dividends at the option of a majority of the holders beginning five years after issuance, provided that the current stock price is less than the conversion price.
In addition to the preferreds, the investors received a security to purchase additional preferreds within 15 months at $100 each.
The company said that in connection with the private placement, $175,000 of debt was converted into 1,750 additional preferreds, and NJTC Venture Fund is entitled to elect two directors to the company's board.
Medasorb is a development-stage medical device company based in Monmouth, N.J., that is developing an adsorbent platform technology for removal of toxins from blood and physiologic fluids.
| Issuer: | Medasorb Technologies Corp.
|
| Issue: | Convertible series B preferred stock
|
| Amount: | $4,275,000
|
| Shares: | 42,750
|
| Dividends: | 10%, payable quarterly
|
| Price: | $100
|
| Warrants: | No
|
| Investors: | NJTC Venture Fund SBIC, LP (lead)
|
| Settlement date: | June 25
|
| Stock symbol: | OTCBB: MSBT
|
| Stock price: | $0.13 on July 1
|
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