By Angela McDaniels
Tacoma, Wash., Oct. 9 - Oxis International, Inc. sold $2 million of 0% two-year convertible debentures in a private placement on Oct. 1, according to an 8-K filed with the Securities and Exchange Commission on Friday.
The debentures are convertible into shares of Oxis common stock at a conversion price of $0.05 per share.
Each investor also received a series A warrant and a series B warrant. Each warrant allows the holder to purchase a number of shares of common stock equal to 50% of the principal amount of convertibles purchased.
The warrants are exercisable for a total of 40 million shares for five years. The exercise price is $0.0625 for the class A warrants and $0.075 for the class B warrants.
In connection with the placement, the company and Bristol Investment Fund, Ltd. entered into a standstill and forbearance agreement under which Bristol agreed to forbear from exercising some rights and remedies afforded to it as a holder of some convertible debentures and demand notes issued by the company. The agreement will remain in effect until less than 25% of the principal amount of convertibles issued in the latest placement is outstanding.
The parties also entered into a waiver agreement for the debentures and notes.
Located in Foster City, Calif., Oxis develops clinical and research assays, diagnostics and nutriceutical and therapeutic products.
| Issuer: | Oxis International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $2 million
|
| Maturity: | Oct. 1, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion price: | $0.05
|
| Warrants: | One series A warrant and one series B warrant per debenture
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.0625 for class A and $0.075 for class B
|
| Settlement date: | Oct. 1
|
| Stock symbol: | Pink Sheets: OXIS
|
| Stock price: | $0.17 at close Oct. 1
|
| Market capitalization: | $7.5 million
|
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