Company revises schedule to settle remaining $4 million of preferreds
By Devika Patel
Knoxville, Tenn., June 15 - Oxygen Biotherapeutics, Inc. revised the terms of a $7.5 million private placement of its 7% series A convertible preferred stock on June 14, according to an 8-K filed Friday with the Securities and Exchange Commission.
The deal priced for $7.5 million Dec. 9, and the company raised $3.5 million on Dec. 12. It planned to raise $4 million on June 12 but instead will now raise that amount in two tranches. The company will now raise $2.5 million on June 15 and $1.5 million on Sept. 14. The change is due to Nasdaq stock market rules requiring stockholder approval to issue more than 20% of the company's outstanding common stock.
The 7,500 preferreds convert at $2.22 per common share. They are redeemable in six equal monthly installments.
Investors also will receive 50% warrant coverage for 1,689,192 common shares. Each warrant is exercisable at $2.22 for five years.
The strike price and conversion price are identical to the Dec. 8 closing share price.
William Blair & Co. is the agent.
Proceeds will be used for Oxycyte PFC development, clinical and preclinical trials, product development and general working capital.
The Morrisville, N.C., company develops biotechnology products with a focus on oxygen delivery to tissue.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $7.5 million
|
| Preferreds: | 7,500
|
| Dividends: | 7%
|
| Conversion price: | $2.22
|
| Redemption: | In six equal monthly installments
|
| Warrants: | 50% coverage (warrants for 1,689,192 shares)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.22
|
| Agent: | William Blair & Co.
|
| Pricing date: | Dec. 9
|
| Settlement dates: | Dec. 12 (for $3.5 million), June 15 (for $2.5 million), Sept. 1 (for $1.5 million)
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $2.22 at close Dec. 8
|
| Market capitalization: | $49.62 million
|
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