By Sheri Kasprzak
New York, Aug. 6 - Ortec International, Inc. sealed the final tranche of its previously announced $8,421,980 placement of series A convertible preferred stock.
In the most recent tranche, the company sold 50.95 shares of the preferreds at $10,000 each.
Each preferred is convertible into 20,000 common shares at $0.50 each.
The investors received warrants for half of the shares issuable upon conversion of the preferreds for a total of 509,500 shares, exercisable at $1.00 each for five years.
The investors also received series M warrants for half of the shares issuable upon conversion. The series M warrants are exercisable at $0.50 each. In the final tranche, the investors received 509,500 series M warrants. The series M warrants expire 30 days after the company receives written notice from the Food and Drug Administration to sell its Orcel product to treat venous stasis ulcers.
The investors also received series M-1 warrants for 509,500 shares, exercisable at $1.00 each. The series M-1 warrants are exercisable upon the exercise of the series M warrants.
New York-based Ortec develops cell culturing technologies.
| Issuer: | Ortec International, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $509,500
|
| Shares: | 50.95
|
| Price: | $10,000
|
| Conversion ratio: | Into 20,000 common shares per preferred
|
| Conversion price: | $0.50
|
| Warrants: | For 509,500 shares; series M warrants for 509,500 shares; series M-1 warrants for 509,500 shares
|
| Warrant expiration: | Five years for 509,500 shares; 30 days after Orcel approval from the FDA
|
| Warrant strike price: | $1.00 for 509,500 shares; $0.50 for series M; $1.00 for series M-1
|
| Settlement date: | July 31
|
| Stock symbol: | Pink Sheets: OTCI
|
| Stock price: | $0.51 at close July 31
|
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