By Devika Patel
Knoxville, Tenn., May 11 - Medgenics, Inc. said it plans a $5 million private placement of two-year 10% convertible debentures.
The unsecured debentures will automatically convert into common shares if the company completes a qualified transaction, such as a merger or public offering of stock. The company tentatively said the conversion price might be $0.07.
Upon conversion, investors will receive five-year warrants, which will be exercisable at 110% of the offering price in the qualified transaction.
Based in Vienna, Va., Medgenics is a biotechnology company and developer of associated medical equipment.
| Issuer: | Medgenics, Inc.
|
| Issue: | Convertible unsecured debentures
|
| Amount: | $5 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.07
|
| Warrants: | Upon conversion
|
| Warrant expiration: | Five years
|
| Pricing date: | May 11
|
| Stock symbol: | London: MEDG
|
| Stock price: | 4.62p at close May 8
|
| Market capitalization: | £5.01 million
|
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