Units of one convertible preferred, one warrant sold via Ladenburg
By Toni Weeks
San Luis Obispo, Calif., July 22 - Oxygen Biotherapeutics, Inc. priced its public offering of 8% series C convertible preferred stock to raise about $5.37 million, according to a 424B1 filing with the Securities and Exchange Commission. The deal was announced on July 17.
The company will sell 5,369 units consisting of one preferred share and one warrant. Each preferred is convertible into 512.82 common shares at $1.95 per share, a 25% discount to the closing share price of $2.60 on July 19.
Each six-year warrant is exercisable for 512.92 shares at an initial exercise price of $2.60, identical to the July 19 closing share price.
The preferreds will accrue dividends for three years at 8% per year, payable quarterly in cash or, if conditions are met, in common stock at 90% of the market price. If the stock is converted into common stock prior to three years after issuance, the holder will receive a make-whole three-year dividend payment at time of conversion.
Ladenburg Thalmann & Co. Inc. is the agent.
Settlement is expected July 23.
Proceeds will be used for clinical trials and efforts to obtain regulatory approval for Oxycyte, developing other product candidates, manufacturing Oxycyte, distribution for Dermacyte, research and development and general corporate purposes.
The Morrisville, N.C., company develops biotechnology products with a focus on oxygen delivery to tissue.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Units of one series C convertible preferred share and one warrant
|
| Amount: | $5,369,000
|
| Preferreds: | 5,369
|
| Price: | $1,000
|
| Coupon: | 8%
|
| Conversion price: | $1.95
|
| Warrants: | For 2,753,348 shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $2.60
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Announcement date: | July 17
|
| Pricing date: | July 22
|
| Settlement date: | July 23
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $2.60 at close July 19
|
| Market capitalization: | $4.15 million
|
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