Three-year note sold in offering to finance general corporate purposes
By Devika Patel
Knoxville, Tenn., June 22 - Oxygen Biotherapeutics, Inc. sold a $4.6 million three-year subordinated convertible promissory note to a single investor on June 16, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The 15% note is initially convertible into common shares at $2.255 per share, which is a 5.87% premium to the June 15 closing share price of $2.13. It may be prepaid.
The investor also received warrants for 2,039,911 shares, which are exercisable for five years. The warrants will be issued in three approximately equal tranches, which will have strike prices of $2.15, $2.60 and $2.85. The warrant strike prices are 0.94%, 22.07% and 33.8% premiums to the June15 closing share price.
Proceeds will be used for general corporate purposes, including Oxygen's dermatology, cosmetics and other businesses.
The Morrisville, N.C., company develops biotechnology products with a focus on oxygen delivery to tissue.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Subordinated convertible promissory note
|
| Amount: | $4.6 million
|
| Maturity: | Three years
|
| Coupon: | 15%
|
| Conversion price: | $2.255
|
| Call: | Yes
|
| Warrants: | For 2,039,911 shares
|
| Warrant expiration: | Five years
|
| Warrant strike prices: | $2.15, $2.60 and $2.85
|
| Settlement date: | June 16
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $2.34 at close June 16
|
| Market capitalization: | $70.18 million
|
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