Company sells two-year notes with 75% warrant coverage in offering
By Devika Patel
Knoxville, Tenn., July 26 - Opexa Therapeutics, Inc. settled a $4.09 million private placement of 12% convertible secured promissory notes on July 25, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The notes mature on July 25, 2014 and are convertible into convertible preferred stock. The 8% preferreds are convertible into common shares at $0.80 per share, which is a 26.98% premium to the July 24 closing share price of $0.63.
Investors also received 75% warrant coverage. Each of the five-year warrants is exercisable at $1.25, a 98.41% premium to the July 24 closing share price.
Investors included Scott B. Seaman, who invested $1.3 million, David E. Jorden, who invested $115,000, and Neil K. Warma, who invested $15,000.
Proceeds will be used for a planned Phase IIb clinical study of Tcelna in patients with Secondary Progressive MS.
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: | Convertible secured promissory notes
|
| Amount: | $4,085,000
|
| Maturity: | July 25, 2014
|
| Coupon: | 12%
|
| Conversion price: | $0.80
|
| Conversion premium: | 26.98%
|
| Warrants: | 75% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Investors: | Scott B. Seaman (for $1.3 million), David E. Jorden (for $115,000) and Neil K. Warma (for $15,000)
|
| Settlement date: | July 25
|
| Stock symbol: | Nasdaq: OPXA
|
| Stock price: | $0.63 at close July 24
|
| Market capitalization: | $14.29 million
|
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