Issues 6.29 million shares, 1.57 million warrants for $8.74 million debt
New York, March 26 - Oragenics, Inc. said it arranged a $2.5 million secured debt financing with warrants and also entered into an agreement to issue 6,285,000 shares and 1,571,000 warrants in exchange for cancellation of $8,737,000 million of existing debt outstanding on its unsecured revolving credit facility.
All the transactions are with the Koski Family LP.
The secured funding is in two equal advances, the first being made on March 23. Koski Family received 599,520 warrants exercisable at $2.00 per share for three years. The warrants issued in the debt exchange have the same terms. The strike price is a 60% premium to the closing stock price of $1.25 on Friday.
"The additional financial resources and improved balance sheet resulting from these transactions will help Oragenics to continue its progress toward becoming a leader in oral care probiotics," John Bonfiglio, Oragenics' chief executive officer and president, said in a news release. "Support from the KFLP comes at an important time in our strategic development."
Oragenics is a Tampa, Fla.-based nutraceutical company focused on oral care probiotics for humans and companion pets.
| Issuer: | Oragenics, Inc.
|
| Issue: | Secured debt financing
|
| Amount: | $2.5 million
|
| Warrants: | For 599,520 shares
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| Warrant expiration: | Three years
|
| Warrant strike price: | $2.00
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| Investor: | Koski Family LP
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| Settlement date: | March 23
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| Stock symbol: | OTC Bulletin Board: ORNI
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| Stock price: | $1.25 at close on March 23
|
| Market capitalization: | $8.1 million
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