Deal with warrants funds working capital, general corporate purposes
By Devika Patel
Knoxville, Tenn., Jan. 6 – MetaStat, Inc. said it raised $1.3 million in a $3.5 million private placement of its series B preferred stock.
The company is selling the preferreds at $0.55 apiece, which is a 37.5% premium to the Jan. 5 closing share price of $0.40.
Investors also will receive series A warrants for 1,714,771 common shares, exercisable at $0.70, and series B warrants for 455,000 shares, exercisable at $0.55. Both types of warrants expire on March 31, 2020. The strike prices are 75% and 37.5% premiums to the Jan. 5 closing share price.
Settlement of the final tranche is expected March 31.
Proceeds will be used for working capital and general corporate purposes.
MetaStat is a life science company based in the Woodlands, Texas.
| Issuer: | MetaStat, Inc.
|
| Issue: | Series B preferred stock
|
| Amount: | $3.5 million
|
| Price: | $0.55
|
| Warrants: | For 2,169,771 shares
|
| Warrant expiration: | March 31, 2020
|
| Warrant strike prices: | $0.70 (for 1,714,771 shares), $0.55 (for 455,000 shares)
|
| Settlement dates: | Jan. 6 (for $1.3 million), March 31
|
| Stock symbol: | OTCBB: MTST
|
| Stock price: | $0.40 at close Jan. 5
|
| Market capitalization: | $10.99 million
|
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