Stock, warrants sold to RENS Technology in tranches over two years
By Devika Patel
Knoxville, Tenn., March 8 – MYOS Corp. settled the first $5.25 million tranche of a $20.25 million private placement of stock with RENS Technology Inc. on March 3, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal priced on Dec. 17.
The company is selling a total of 3,537,037 common shares and five-year warrants for 884,259 shares to the investor in three tranches over two years.
The first $5.25 million tranche consisted 1.5 million shares and warrants for 375,000 shares, each exercisable at $7.00.
The second $5 million tranche will consist of 925,926 shares and warrants for 231,481 shares, each exercisable at $10.80.
The third $10 million tranche will consist of 1,111,111 shares and warrants for 277,778 shares, each exercisable at $18.00.
The strike prices are 309.36%, 531.58% and 952.63% premiums to the Dec. 16 closing price of $1.71.
Settlement of the second tranche is expected within six months, with the third tranche settling 18 months after the second tranche.
Proceeds will be used for working capital, product development and marketing, research and development and other general corporate purposes.
The Cedar Knolls, N.J., company develops and commercializes therapeutic products, nutritional supplements and other technologies to improve the health and performance of muscle tissue.
| Issuer: | MYOS Corp.
|
| Issue: | Common stock
|
| Amount: | $20.25 million
|
| Shares: | 3,537,037
|
| Warrants: | For 884,259 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $7.00, $10.80, $18.00
|
| Investor: | RENS Technology Inc.
|
| Pricing date: | Dec. 17
|
| Settlement date: | March 3 (for $5.25 million)
|
| Stock symbol: | Nasdaq: MYOS
|
| Stock price: | $1.71 at close Dec. 16
|
| Market capitalization: | $5.9 million
|
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