By Sheri Kasprzak
New York, July 26 - Ortec International, Inc. settled a $2.121 million private placement of series A convertible preferred stock.
The company sold 212.1 shares of the preferreds at $10,000 each.
Each $10,000 in preferreds is convertible into 20,000 common shares at $0.50 each.
The investors also received warrants for half of the shares issuable upon conversion, exercisable at $1.00 each for five years.
The investors also received series M warrants, exercisable at $0.50 each for 30 days after the company receives Food and Drug Administration clearance to sell its Orcel product to treat venous stasis ulcers. The number of series M warrants will be equal to half of the shares issuable upon conversion or 100% of the shares issuable upon conversion assuming an investment of at least $3.5 million. The offering also includes series M-1 warrants for half of the shares issuable upon the exercise of the series M warrants. The M-1 warrants are exercisable at $1.00 each for five years.
Ortec, based in New York, develops cell culturing technologies.
| Issuer: | Ortec International, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $2.121 million
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| Shares: | 212.1
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| Price: | $10,000
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| Conversion price: | $0.50
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| Conversion ratio: | Each $10,000 in preferreds into 20,000 common shares
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| Warrants: | For half of the shares issuable upon conversion; series M warrants for half of the shares issuable upon conversion or 100% if $3.5 million or more is invested; series M-1 warrants for half of the shares issuable upon exercise of M warrants
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.00 for regular warrants; $0.50 for series M warrants; $1.00 for series M-1 warrants
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| Settlement date: | July 25
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| Stock symbol: | Pink Sheets: OTCI
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| Stock price: | $0.51 at close July 25
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