Preferreds sold at $1,000.00 each with warrants for 13,297,297 shares
By Devika Patel
Knoxville, Tenn., Feb. 3 - Mela Sciences, Inc. arranged a $12.3 million private placement of series A convertible preferred stock on Jan. 31, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 12,300 preferreds at $1,000.00 per preferred.
Each preferred will be convertible into 14,642,857 common shares at a conversion price of $0.84.
The investors also received warrants for 13,297,297 common shares. The warrants are each exercisable at $0.74 for five years.
The strike price and conversion price reflect a 1.33% discount and 12% premium to the $0.58 closing share price on Jan. 30.
Funds managed by Sabby Management, LLC and Broadfin Capital, LLC were the investors.
Settlement is expected Feb. 5.
Proceeds will be used for general corporate purposes, including working capital, and to pay any liquidated damages.
Mela is an Irvington, N.Y., medical device company.
| Issuer: | Mela Sciences, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $12.3 million
|
| Shares: | 12,300
|
| Price: | $1,000.00
|
| Conversion price: | $0.84
|
| Conversion ratio: | Into 14,642,857 common shares
|
| Warrants: | For 13,297,297 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.74
|
| Investors: | Sabby Management, LLC and Broadfin Capital, LLC
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 5
|
| Stock symbol: | Nasdaq: MELA
|
| Stock price: | $0.75 at close Jan. 30
|
| Market capitalization: | $34.29 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
