Deal consists of units of shares and series A and series B warrants
By Susanna Moon
Chicago, Feb. 24 - Oculus Innovative Sciences, Inc. said it will obtain $1.35 million of proceeds from a registered direct offering of units.
The company entered into definitive agreements with two life sciences-focused institutional investors to sell 450,620 units, consisting of common shares and series A and series B warrants, at a price of $3.00 per share.
The total amount consists of 450,620 shares, series A warrants for up to 450,620 shares of common stock at an exercise price of $3.00 per share and series B warrants for up to 1.4 million shares at an exercise price of $3.63 per share.
The strike price for the series A warrants is a 17.36% discount to the company's closing price on Feb. 20, and the strike price for the series B warrants is equal to the closing price.
The series A warrants are exercisable for five years, and the series B warrants have a term of 18 months and are not exercisable for six months following closing of the initial public offering of the company's subsidiary, Ruthigen, Inc. The series B warrants have not vested and will not vest until the completion of the IPO. The series B warrants terminate on March 31 if the Ruthigen IPO has not occurred by that date.
Proceeds will be used to fund working capital needs and for general corporate purposes.
Dawson James Securities, Inc. was the placement agent.
Petaluma, Calif.-based Oculus develops and markets products for the prevention and elimination of infection in chronic and acute wounds.
| Issuer: | Oculus Innovative Sciences, Inc.
|
| Issue: | Units of common shares and series A and series B warrants
|
| Amount: | $1,351,860
|
| Units: | 450,620
|
| Price: | $3.00
|
| Warrants: | Series A warrants for up to 450,620 shares, series B warrants for up to 1.4 million shares
|
| Warrant expiration: | Five years for series A warrants, 18 months for series B warrants
|
| Warrant strike price: | $3.00 for series A warrants, $3.63 for series B warrants
|
| Agent: | Dawson James Securities, Inc.
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Nasdaq: OCLS
|
| Stock price: | $3.63 at close Feb. 20
|
| Market capitalization: | $25.34 million
|
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