Company sells series D preferreds, warrants to JP SPC 3 Obo OXBT Fund
By Devika Patel
Knoxville, Tenn., Aug. 13 - Oxygen Biotherapeutics, Inc. arranged a $4.6 million private placement of its 8% series D convertible preferred stock with JP SPC 3 Obo OXBT Fund, SP on Aug. 7, according to an 8-K filed Friday with the Securities and Exchange Commission. As consideration for the deal, $4.6 million of a 15% convertible promissory note held by the investor will be canceled.
The preferreds initially convert into 2,358,974 common shares at $1.95 per common share.
Investors also will receive 100% warrant coverage. Each warrant is exercisable at $2.60 until Aug. 15, 2019.
The strike price and conversion price are 72.19% and 29.14% premiums to the Aug. 6 closing share price of $1.51.
Settlement is expected Aug. 15.
The Durham, N.C., company develops biotechnology products with a focus on oxygen delivery to tissue.
| Issuer: | Oxygen Biotherapeutics, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $4.6 million
|
| Dividends: | 8%
|
| Conversion price: | $1.95
|
| Conversion ratio: | Into 2,358,974 common shares
|
| Warrants: | 100% coverage
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| Warrant expiration: | Aug. 15, 2019
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| Warrant strike price: | $2.60
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| Investor: | JP SPC 3 Obo OXBT Fund, SP
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| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 15
|
| Stock symbol: | Nasdaq: OXBT
|
| Stock price: | $1.51 at close Aug. 6
|
| Market capitalization: | $3.33 million
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