By Sheri Kasprzak
New York, April 4 - Ortec International, Inc. said it entered into agreements for a private placement of series E convertible preferred stock for $6,166,000.
The company sold 6,166 shares of the 6% preferreds.
Each preferred is convertible into 5,000 common shares at $0.20 each.
The investor will receive warrants for 5,000 shares for every $1,000 in investment. The warrants are exercisable at $0.50 each for five years.
Proceeds from the deal will be used to help pay for Ortec's acquisition of Hapto Biotech, Inc. The proceeds will be held in escrow until the company's receives formal approval for the merger - expected on April 11.
Hapto is a private company that develops two fibrin-derived platform technologies used to regenerate human tissue.
Rodman & Renshaw, LLC was the bookrunner with Riverbank Capital Securities, Inc. as co-agent.
New York-based Ortec is a tissue-engineering company focused on products to repair and regenerate human tissue.
Issuer: | Ortec International, Inc.
|
Issue: | Series E convertible preferred stock
|
Amount: | $6,166,000
|
Shares: | 6,166
|
Price: | $1,000
|
Dividends: | 6%
|
Conversion ratio: | Each preferred into 5,000 common shares
|
Conversion price: | $0.20
|
Warrants: | For 5,000 shares per $1,000 investment
|
Warrant expiration: | Five years
|
Warrant strike price: | $0.50
|
Placement agents: | Rodman & Renshaw, LLC (lead), Riverbank Capital Securities, Inc.
|
Announcement date: | April 4
|
Stock symbol: | OTCBB: ORTN
|
Stock price: | $0.33 at close April 4
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.