By Sheri Kasprzak
Atlanta, Oct. 22 - Medical Discoveries Inc. released details of its previously announced $1.2 million in a private placement to two investors.
The company sold 12,000 shares of preferred stock and warrants for 4,575,496 shares of common stock to Monarch Pointe Fund Ltd. and Mercator Advisory Group LLC.
The preferred shares are convertible into common shares at 85% of the average of the lowest three prices for three trading days during the 10 days after the conversion date. The conversion price cannot exceed $0.1967 or be lower than $0.05.
The warrants, exercisable for three years, entitle the buyers to purchase 4,575,496 common shares at $0.1967.
Ascendiant Securities LLC served as the placement agent in the deal.
Medical Discoveries, a Twin Falls, Idaho-based biopharmaceutical research company, plans to use the proceeds from the deal for clinical trials for cystic fibrosis treatments.
| Issuer: | Medical Discoveries Inc.
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| Issue: | Stock
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| Amount: | $1.2 million
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| Shares: | 12,000 preferred shares
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| Price: | $100
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| Conversion price: | Preferred shares are convertible at 85% of the average of the lowest three prices for three trading days during 10 days after the conversion date
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| Warrants: | For 4,575,496 common shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.1967
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| Placement agent: | Ascendiant Securities LLC
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| Investors: | Monarch Pointe Fund Ltd. and Mercator Advisory Group LLC.
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| Settlement date: | Oct. 18
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| Announcement date: | Oct. 22
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| Stock price: | $0.23 at close Oct. 18
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