Three-year note sold in offering to finance general corporate purposes
By Devika Patel
Knoxville, Tenn., July 1 - Oxygen Biotherapeutics, Inc. settled a $4.9 million private placement of three-year subordinated convertible promissory notes on July 1, according to an 8-K filed Friday with the Securities and Exchange Commission. The offering priced for $4.6 million June 16 and was increased on June 29; JP SPC 3 obo OXBT FUND, SP was one of the two investors.
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.
Investors also received warrants for 2,172,949 shares, which are exercisable for five years. The warrants will be issued in three about 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 June 15 closing share price.
Proceeds will be used for general corporate purposes, including Oxygen's dermatology, cosmetics and other businesses.
The Durham, N.C., company develops biotechnology products with a focus on oxygen delivery to tissue.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Subordinated convertible promissory note
|
| Amount: | $4.9 million
|
| Maturity: | Three years
|
| Coupon: | 15%
|
| Conversion price: | $2.255
|
| Call: | Yes
|
| Warrants: | For 2,172,949 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.15, $2.60 and $2.85
|
| Investor: | JP SPC 3 obo OXBT FUND, SP
|
| Pricing date: | June 16
|
| Upsized: | June 29
|
| Settlement date: | July 1
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $2.34 at close June 16
|
| Market capitalization: | $69.47 million
|
© 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.
