Convertible series B-1, B-2 preferred stock sold at $1,000 apiece
By Devika Patel
Knoxville, Tenn., Feb. 25 - Oxygen Biotherapeutics, Inc. gave further details about a $1.6 million offering of series B-1 convertible preferred stock and a $500,000 sale of series B-2 convertible preferred stock in an 8-K filed Monday with the Securities and Exchange Commission. The deal priced on Friday, when the company said it was selling the series B-1 preferreds.
The company will sell 1,600 series B-1 preferreds at $1,000 apiece and 500 series B-2 preferreds at that price. Each preferred converts to common stock at $0.25 per share, which is a 50% discount to the Feb. 21 closing share price of $0.50.
Investors also will receive 150% warrant coverage. Half of the warrants are exercisable at $0.50 for two years and half will be exercisable at $0.50 for six years. The warrant strike price is identical to the Feb. 21 closing share price.
Ladenburg Thalmann & Co. Inc. is the agent.
Settlement is expected Feb. 27.
Proceeds will be used for clinical trials and efforts to obtain regulatory approval for Oxycyte, developing other product candidates, manufacturing Oxycyte, research and development and general corporate purposes.
The Morrisville, N.C., company develops biotechnology products with a focus on oxygen delivery to specific target tissues.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Series B-1 convertible preferred stock, series B-2 convertible preferred stock
|
| Amount: | $2.1 million
|
| Price: | $1,000.00
|
| Conversion price: | $0.25
|
| Warrants: | 150% coverage
|
| Warrant expiration: | Two years, six years
|
| Warrant strike price: | $0.50
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $0.50 at close Feb. 21
|
| Market capitalization: | $11.1 million
|
|
|
| Series B-1
|
| Amount: | $1.6 million
|
| Shares: | 1,600
|
|
|
| Series B-2
|
| Amount: | $500,000
|
| Shares: | 500
|
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