By LLuvia Mares
New York, Sept. 7 - Applied DNA Sciences, Inc. intends to raise up to $2 million in bridge financing and up to $9 million in a follow-on financing through the issuance of convertible notes and warrants.
The bridge loan will be for no more than $2 million with a one-year maturity bearing interest at 10% per annum with 4 million four-year warrants exercisable at $0.50 per share.
The $2 million bridge loan will be convertible up to the first anniversary of issuance into shares of the company's common stock at a price equal to 50% of the average closing price for the 10 days prior to the conversion notice date.
There is an automatic conversion provision at a price equal to a 30% discount to the average volume weighted average price of the common stock for the 10 trading days prior to the closing date of the loan.
The offering for the $9 million will consist of 10% senior secured convertible notes with 18 million four-year warrants exercisable at $0.50 per share. The notes will have a two-year term.
The notes are convertible into shares of common stock at a price equal to 50% of the average closing price of the 10 days prior to the conversion notice with a conversion price equal to a 20% discount to the average volume weighted average price of the common stock for the ten trading days prior to the closing date of the offering.
Arjent Ltd. acted as placement agent in the transaction.
Stony Brook, N.Y.-based DNA Sciences provides patented DNA-based technologies to prevent and identify counterfeits.
Issuer: Applied DNA Sciences, Inc.
Issue: Convertible notes and warrants
Amount: $2 million bridge financing and up to $9 million in a follow-on financing
Maturity: One-year for bridge financing and two-years for follow-on
| Coupon: | 10%
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| Conversion price: | 30% discount to the average volume weighted average price of the common stock for the ten trading days prior to the conversion notice date.
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| Placement agent: | Arjent Ltd.
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| Announcement date: | Sept. 7
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| Stock symbol: | OTCBB: APDN
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| Stock price: | $0.12 at close Sept. 6
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