By Sheri Kasprzak
Atlanta, Feb. 11 - Applied DNA Sciences Inc. closed the second and final tranche of its $7,361,000 private placement for $1,391,000.
The company sold secured convertible promissory notes to 19 investors.
The notes bear interest at 10% annually, mature in one year and are convertible into common shares at $0.50 each. The notes convert either at the holders' option or automatically once Applied DNA files a registration statement for the shares underlying the notes and warrants.
If the company does not repay the notes and interest when due, the notes become convertible at $0.33 each. The interest rate also increases to 12% in the event of a default.
The investors also received warrants for 2,782,000 shares at $0.75 each for five years. The warrants are callable, after the registration statement is effective, upon 10 days' notice, if Applied DNA's stock trades above $1.25 each for 20 consecutive trading days.
Vertical Capital Partners Inc. was the placement agent in the deal.
On Jan. 28, Applied DNA finished the first tranche of the offering for $5.97 million. The notes were sold under the same terms. The investors in the first tranche received warrants for a total of 5.97 million shares under the same terms as the second tranche.
Based in Los Angeles, Applied DNA Sciences develops DNA-encoded products to determine genuine articles from counterfeits.
| Issuer: | Applied DNA Sciences Inc.
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| Issue: | Secured convertible promissory notes
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| Amount: | $1,391,000
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| Maturity: | One year
|
| Coupon: | 10%
|
| Price: | Par
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| Yield: | 10%
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| Conversion price: | $0.50
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| Warrants: | For 2,782,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.75
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| Warrant call: | If stock trades above $1.25 per share for 20 consecutive days
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| Placement agent: | Vertical Capital Partners Inc.
|
| Settlement date: | Feb. 11
|
| Stock price: | $1.22 at close Feb. 11
|
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