Offering total includes conversion of $1.5 million bridge notes
By Devika Patel
Knoxville, Tenn., March 19 - Organovo Holdings, Inc. said it settled a $15.25 million private placement of units. The oversubscribed deal raised $6.53 million on Feb. 8, $1.81 million on Feb. 29 and $6.92 million in the latest closing. The offering was conducted by agent Spencer Trask Ventures, Inc. and was part of a reverse merger transaction.
The company sold 15,247,959 units of one common share and one warrant at $1.00 per unit. It sold 6,525,887 units in the first tranche, 1,806,072 units in the second and 6,916,000 units in the third tranche.
Each warrant will be exercisable at $1.00 for five years; the strike price is a 39.39% discount to the Feb. 14 closing share price of $1.65.
Included in the size of the offering is the conversion of $1.5 million principal amount and $25,379 of accrued interest on previously issued bridge notes.
The bridge financing carried out by Organovo, Inc. before the merger was $1.5 million of 6% convertible promissory notes due March 31, 2012 and warrants to buy 1.5 million shares.
In the reverse merger, Real Estate Restoration and Rental, Inc., a Nevada corporation, first merged with Organovo Holdings, Inc. on Dec. 28 in order to change its name. It then merged with a Delaware corporation, also called Organovo Holdings, Inc. in order to change its domicile. On Feb. 8, its subsidiary Organovo Acquisition Corp. merged with Organovo, Inc., with Organovo, Inc. the surviving corporation.
The first tranche of the unit sale closed concurrently with the merger.
Proceeds will be used for working capital and general corporate purposes.
Based in San Diego, Organovo is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications.
| Issuer: | Organovo Holdings, Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $15,247,959
|
| Units: | 15,247,959
|
| Price: | $1.00
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Agent: | Spencer Trask Ventures, Inc.
|
| Settlement date: | Feb. 8 (for $6,525,887), Feb. 29 (for $1,806,072), March 19 (for $6,916,000)
|
| Stock symbol: | Pink Sheets: ONVO
|
| Stock price: | $1.65 at close Feb. 14
|
| Market capitalization: | $90.23 million
|
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