Private offering places one-year 4% debentures with multiple investors
By Devika Patel
Knoxville, Tenn., Sept. 27 - Medgenics, Inc. said it took in $4 million through a private placement of 4% convertible unsecured debentures. The offering priced for between $1 million and $3 million on Aug. 24.
The debentures mature in one year and are convertible into shares at 13p. The conversion price represents a 57.58% premium to the 8.25p closing share price on Aug. 23.
The debentures will automatically convert upon the company completing an underwritten public offering of stock which raises at least $6 million at a conversion price equal to the lesser of 13p and 75% of the public offering price of the stock.
Investors also received 75% warrant coverage. The warrants will be exercisable at 16p for five years. The strike price reflects a 93.94% premium to the closing share price on Aug. 23.
Investors included the Kanter Family Foundation and CIBC Trust Co. (Bahamas) Ltd., which each purchased $100,000 of debentures. In addition, Chicago Investments, Inc. purchased $50,000 of debentures.
Based in Vienna, Va., Medgenics is a biotechnology company and developer of associated medical equipment.
| Issuer: | Medgenics, Inc.
|
| Issue: | Convertible unsecured debentures
|
| Amount: | $4 million
|
| Maturity: | One year
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion price: | 13p
|
| Warrants: | 75% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 16p
|
| Investors: | Kanter Family Foundation (for $100,000), CIBC Trust Co. (Bahamas) Ltd. (for $100,000), Chicago Investments, Inc. (for $50,000)
|
| Pricing date: | Aug. 24
|
| Stock symbol: | London: MEDG
|
| Stock price: | 8.97p at close Aug. 24
|
| Market capitalization: | £13.01 million
|
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