NEW YORK (GenomeWeb) – BG Medicine has entered in financing agreements for $2.5 million, the company disclosed in a document filed with the US Securities and Exchange Commission on Tuesday.
The firm entered into a securities purchase agreement with its principal shareholders Applied Genomic Technology Capital Fund, AGTC Advisors Fund, and Flagship Ventures Fund, under which BG Medicine sold secured convertible promissory notes totaling $500,000.
Additionally, BG Medicine has agreed to sell to the purchasers $2 million of newly created Series A preferred stock.
The firm said that in accordance with the deal, it has granted the purchasers a security interest in "substantially all of the company's assets," excluding BG Medicine's intellectual property. The IP, though, will become subject to the security interest granted by BG Medicine after it repays a loan and security agreement BG Medicine reached with General Electric Capital in February 2012.
BG Medicine also said that holders of the Series A preferred stock will be able to nominate one board member, who will be initially elected following the company's 2015 annual meeting.
Lastly, BG Medicine said that Stéphane Bancel has resigned from the board and will be replaced by Harry Wilcox. Bancel and Wilcox are affiliated with Flagship Ventures.