Company gets $2.38 million cash, cancellation of $1.93 million of debt
By Devika Patel
Knoxville, Tenn., Jan. 23 - Tonix Pharmaceuticals Holding Corp. completed a $4.3 million private placement of units on Jan. 20, according to an 8-K filed Monday with the Securities and Exchange Commission. The company issued units in exchange for $2.38 million of cash and the cancellation of $1.93 million of secured convertible debentures.
The company sold 172.118 units of 25,000 common shares and warrants for 50,000 shares at $25,000 per unit.
Of the warrants, half are exercisable at $1.25 for five years. If the average of the company's daily volume-weighted average price is below $0.75 during the 10 trading days after the announcement date, the remaining warrants will be exercised automatically on the 12th trading day after the announcement date through a cashless exercise. Otherwise, they will expire without being exercised. The announcement date is the earlier of June 1 and the date on which the company announces via a press release the results of the pharmacokinetic study of its TNX-102 drug formulation.
The company will use the proceeds for its TNX-102 pharmacokinetic study and first pivotal trial, to develop its other product candidates, to repay debt, to pay interest and for general working capital.
Tonix is a specialty pharmaceutical company based in New York.
| Issuer: | Tonix Pharmaceuticals Holding Corp.
|
| Issue: | Units of 25,000 common shares and warrants for 50,000 shares
|
| Amount: | $4,302,950
|
| Total purchase price: | $2,377,950 of cash and the cancellation of $1,925,000 of debt
|
| Units: | 172.118
|
| Price per unit: | $25,000
|
| Warrants: | Warrants for 50,000 shares per unit
|
| Warrant expiration: | Five years (for 25,000 shares)
|
| Warrant strike price: | $1.25 (for 25,000 shares)
|
| Settlement date: | Jan. 20
|
| Stock symbol: | OTCBB: TNXP
|
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