By Laura Lutz
Des Moines, Sept. 28 - Avicena Group, Inc. raised $3.11 million from the first tranche of a $19.7 million private placement of convertible preferred stock.
The placement consists of series C convertible preferred shares at $1,000 each.
The preferreds are convertible at a conversion price of $3.35 per share.
The investors in this tranche also received C-1 warrants for 696,269 shares, C-2 warrants for 674,620 shares and C-3 warrants for up to 75% of the number of shares acquired upon exercise of the C-2 warrants, capped at 505,965 shares.
The C-1 warrants are exercisable at $4.19 for five years, the C-2 warrants are exercisable at $4.61 for one year and the C-3 warrants are exercisable at $5.76 for five years.
Final settlement of the placement is expected by Oct. 26.
Proceeds will be used for clinical development, regulatory submissions and potential commercialization of Avicena's programs. Some of the proceeds will also be used to launch the company's proprietary skin-care line, Nurigene.
Avicena is a biotechnology company based in Palo Alto, Calif.
| Issuer: | Avicena Group, Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $3.11 million
|
| Shares: | 3,110
|
| Price: | $1,000
|
| Conversion price: | $3.35
|
| Warrants: | C-1 warrants for 696,269 shares, C-2 warrants for 674,620 shares, C-3 warrants for up to 75% of the number of shares acquired upon exercise of the C-2 warrants
|
| Warrant expiration: | Five years for C-1 and C-3; one year for C-2
|
| Warrant strike price: | $4.19 for C-1, $4.61 for C-2, $5.76 for C-3
|
| Settlement date: | Sept. 24
|
| Stock symbol: | OTCBB: AVGO
|
| Stock price: | $3.10 at close Sept. 24
|
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