One-year notes were sold with 10-year warrants for 10 million shares
By Devika Patel
Knoxville, Tenn., Aug. 30 - Biozone Pharmaceuticals, Inc. settled a $2 million private placement of one-year secured convertible promissory notes on Aug. 26, according to an 8-K filed Friday with the Securities and Exchange Commission.
The 10% notes convert to common stock at an initial conversion price of $0.20 per share, which is a 58.33% discount to the Aug. 23 closing share price of $0.48. It may be prepaid.
The lone investor also received 10-year warrants for 10 million common shares. The warrants are exercisable at $0.40, a 16.67% discount to the Aug. 23 closing share price.
Proceeds were used to repay promissory notes held by the company's former executive vice president and for general working capital purposes.
Biozone is a Henderson, Nev., biopharmaceutical company.
| Issuer: | Biozone Pharmaceuticals, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $2 million
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Conversion price: | $0.20
|
| Call: | Yes
|
| Warrants: | For 10 million shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.40
|
| Settlement date: | Aug. 26
|
| Stock symbol: | OTCBB: BZNE
|
| Stock price: | $0.48 at close Aug. 23
|
| Market capitalization: | $33.41 million
|
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