NEW YORK (GenomeWeb) – Pressure BioSciences announced today that it has closed a roughly $2.2 million tranche of a $5 million private placement, netting approximately $1.3 million.
According to the company, about $1.5 million of the investment was received in cash, with the remainder coming from the conversion of principal and interest on outstanding promissory notes.
Under the terms of the placement, Pressure Bio said that it will issue senior secured convertible debentures with a fixed conversion price of $.28 per restricted common share, as well as common stock purchase warrants exercisable into a total of 3.9 million shares of restricted common stock exercisable at $.40 per share.
Pressure Bio President and CEO Richard Schumacher said in a statement that funds from the tranche will be used to increase the company's marketing and sales headcount, continue building the installed base of instruments and use of consumables, and to retire a significant portion of the variable priced convertible debt previously assumed.
"It is expected that cash received from any additional closings that might occur in the near future will be used to pay off any remaining variable priced convertible debt," he added.
Pressure Bio said at least one additional tranche may close on or before August 7.
As of March 31, the firm had $220,310 in cash and cash equivalents. When it announced its first quarter financial results in May, Pressure Bio warned of a cash shortage.