By Jennifer Chiou
New York, April 16 - Opexa Therapeutics, Inc. announced the completion of a first tranche for $1.1 million in a private placement of secured convertible notes and warrants.
The notes accrue interest at 10% per year, payable at maturity in either cash or stock.
They mature on April 14, 2011 and are secured by all of the company's tangible and intangible assets, excluding those particular fixed assets securing the company's equipment line with Wells Fargo, NA, according to an 8-K filing with the Securities and Exchange Commission.
The notes are convertible into common stock at a price of $0.50 per share.
Additionally, subject to the satisfaction of certain conditions, the notes are mandatorily convertible at the company's option at $0.50 per share. The required conditions include Opexa entering into an agreement that will fund a phase 2b or phase 3 clinical trial for the further development of Tovaxin; the company's common stock trading at a price greater than or equal to $1.00 per share for 20 consecutive trading days; and Opexa having an effective registration statement on file with the SEC for the re-sale of the shares of common stock issuable upon conversion of the notes.
The warrants expire on April 14, 2013 and are exercisable to purchase 1,101,000 shares of common stock at an exercise price of $0.75 per share.
In connection with the offering, Opexa will pay Cambria Capital, LLC $41,600 in sales commissions, reimburse it for costs associated with the placement and issue four-year warrants to acquire 87,360 shares of common stock exercisable at $0.75 per share.
Participating in the financing were existing shareholders, consisting of institutional investors, private individuals and members of Opexa's board.
Opexa said it will use the proceeds from the financing to support the ongoing partnering discussions for both its Tovaxin T-cell program and its stem cell platform.
The Woodlands, Texas-based Opexa develops and commercializes cell therapies to treat autoimmune diseases such as multiple sclerosis, rheumatoid arthritis and diabetes.
| Issuer: | Opexa Therapeutics, Inc.
|
| Issue: | Secured convertible notes and warrants
|
| Amount: | $1,101,000 (first tranche)
|
| Maturity: | April 14, 2011
|
| Coupon: | 10%, payable at maturity
|
| Conversion price: | $0.50 per share
|
| Warrants: | For 1,101,000 shares
|
| Warrant expiration: | April 14, 2013
|
| Warrant strike price: | $0.75
|
| Settlement date: | April 14
|
| Stock symbol: | Nasdaq: OPXA
|
| Stock price: | $0.39 at close April 15
|
| Market capitalization: | $5.03 million
|
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