Convertibles sold to Seaside, convert to common shares every two weeks
By Devika Patel
Knoxville, Tenn., July 27 - NanoViricides, Inc. said it settled another $2.5 million tranche of a registered direct offering of 10% series B convertible preferred stock with Seaside 88, LP, bringing the total amount raised in this deal to $15 million. The deal was announced in April and the company previously raised $2.5 million on April 19 and $5 million on April 20.
The company sold 1.5 million preferreds at $10.00 apiece to the investor.
The preferreds are convertible into common shares every two weeks. The conversion factor is equal to the purchase price of $10 per preferred divided by the lesser of the 10-day daily volume-weighted average of actual trading prices of the common stock multiplied by 0.85 or the volume-weighted average price for the trading day immediately prior to the conversion date multiplied by 0.88.
The first conversion of 40,000 preferreds into 377,800 common shares took place contemporaneously with the tranche settlement. Additional conversions will follow every two weeks.
The unconverted preferreds will accrue a 10% annual dividend, which is payable in common stock.
Midtown Partners & Co., LLC is the agent.
Proceeds will be used for working capital and general corporate purposes.
NanoViricides is a West Haven, Conn., biopharmaceutical company.
| Issuer: | NanoViricides, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $15 million
|
| Shares: | 1.5 million
|
| Price: | $10.00
|
| Dividends: | 10%
|
| Conversion ratio: | Into 7.5 million common shares
|
| Warrants: | No
|
| Agent: | Midtown Partners & Co., LLC
|
| Investor: | Seaside 88, LP
|
| Settlement date: | April 19 (for $2.5 million), April 20 (for $5 million), July 27 (for $2.5 million)
|
| Upsized: | April 20
|
| Stock symbol: | OTCBB: NNVC
|
| Stock price: | $1.49 at close April 18
|
| Market capitalization: | $167.67 million
|
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