Investors buy discounted notes along with warrants for 72,730 shares
By Devika Patel
Knoxville, Tenn., Feb. 19 – MetaStat, Inc. arranged to sell $1.2 million of original issue discount promissory notes on Feb. 12, according to an 8-K filed Friday with the Securities and Exchange Commission. The company will receive $1 million. The company sold $420,000 of notes for $350,000 on Feb. 12.
The note matures in six months and may be prepaid.
Investors, which include Dolphin Offshore Partners, LP, also will receive warrants for 72,730 shares. The five-year warrants are each exercisable at $8.25, a 251.06% premium to the Feb. 11 closing share price of $2.35.
The company issued warrants for 25,457 shares in the initial tranche.
Proceeds will be used for working capital and general corporate purposes.
MetaStat is a Boston-based molecular diagnostic company.
| Issuer: | MetaStat, Inc.
|
| Issue: | Original issue discount promissory note
|
| Amount: | $1.2 million
|
| Maturity: | Six months
|
| Price: | $1 million
|
| Call: | Yes
|
| Warrants: | For 72,730 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $8.25
|
| Investor: | Dolphin Offshore Partners, LP
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 12 ($420,000 of notes for $350,000)
|
| Stock symbol: | OTCBB: MTST
|
| Stock price: | $2.35 at close Feb. 11
|
| Market capitalization: | $4.52 million
|
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