Schuler, Patience, Mehren to invest $14.42 million in initial tranche
By Marisa Wong
Madison, Wis., April 24 - Accelr8 Technology Corp. announced today that Abeja Ventures, LLC, an investment group formed by Jack Schuler, John Patience and Larry Mehren, will invest a total of up to $35 million in Accelr8's common stock.
Specifically, the company has agreed to sell 14 million shares of its common stock at $1.03 per share for a total purchase price of $14.42 million.
The investors will also be issued 7 million warrants with an exercise price at $1.03 and 7 million warrants with an exercise price at $2.00. The strike prices represent 58.96% and 20.32% discounts, respectively, to the April 23 closing share price of $2.51. Each warrant is exercisable for five years.
Accelr8 said it is raising funds to complete the product development and market introduction of its BACcel culture-free, diagnostic system for same-shift identification and antibiotic resistance testing of bacterial and fungal pathogens.
The transaction is expected to close on or before July 1.
Based in Denver, Accelr8 develops materials and instruments for advanced applications in medical instrumentation, basic research, drug discovery and bio-detection.
| Issuer: | Accelr8 Technology Corp.
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| Issue: | Common shares, warrants
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| Amount: | Up to $35 million ($14.42 million for initial issue of stock)
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| Shares: | 14 million
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| Price: | $1.03
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| Warrants: | 14 million
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| Warrant expiration: | Five years
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| Warrant strike prices: | $1.03 (for 7 million warrants), $2.00 (for 7 million warrants)
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| Investor: | Abeja Ventures, LLC (Jack Schuler, John Patience and Larry Mehren)
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| Announcement date: | April 24
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| Stock symbol: | NYSE Amex: AXK
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| Stock price: | $2.51 at close April 23
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| Market capitalization: | $25.2 million
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