By Sheri Kasprzak
Atlanta, Dec. 13 - Medical Discoveries Inc. revealed details Monday on its previously announced $3 million private placement.
The company sold 30,000 shares of series A convertible preferred stock to Mercator Momentum Fund LP, Mercator Momentum Fund III LP and Mercator Advisory Group LLC.
The preferreds are convertible into common shares at a price equal to $100 multiplied by the conversion price, which is 75% of the average of the lowest three intra-day trading prices for 10 days before the conversion price. The conversion price has a floor of $0.1967.
The investors also received warrants to buy 22,877,478 shares at $0.1967 per share for three years.
Ascendiant Securities LLC was the placement agent in the offering.
Based in Twin Falls, Idaho, Medical Discoveries is a development-stage biopharmaceutical company. The company is engaged in the research, development and validation of anti-infective technology. The funding from the private placement will support the prospective acquisition of biotechnology assets and intellectual property.
| Issuer: | Medical Discoveries Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $3 million
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| Shares: | 30,000
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| Price: | $100
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| Warrants: | For 22,877,478 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: | Mercator Momentum Fund LP, Mercator Momentum Fund III LP and Mercator Advisory Group LLC
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| Settlement date: | Dec. 7
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| Stock price: | $0.23 at close Dec. 7
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| Stock price: | $0.23 at close Dec. 13
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