NEW YORK (GenomeWeb News) – Pressure BioSciences has raised $825,720 in gross proceeds from a private placement, it said in a document filed on Tuesday with the US Securities and Exchange Commission.
The South Easton, Mass.-based company also disclosed that it has received a letter from Nasdaq saying its stock fails to meet a listing requirement and could face delisting action.
Pressure Bio said that it entered into a securities purchase agreement on April 8, in which it consummated the sale of 51,379 units on April 8 and 3,669 units on April 11 at a price of $15 per unit to 10 accredited investors, including its President and CEO Richard Schumacher.
Each unit consists of one share of Series C Convertible Preferred Stock convertible into 10 shares of the company's common stock, and a three-year warrant to purchase 10 shares of common stock at $2.38 per share. The warrants are exercisable until the close of the business on the third anniversary of the applicable closing date.
Pressure Bio said that the placement is the first closing of a private placement targeting $6 million with a minimum offering amount of $600,000, and additional closings are anticipated to occur on or before June 30.
Pressure Bio also said that it received a warning letter from Nasdaq on April 6 saying its stockholders' equity reported in its annual report for the year ended Dec. 31, 2010, does not meet a minimum requirement of at least $2.5 million to remain listed on the exchange.
According to the company's annual report, it had $1.8 million in stockholder equity at the end of 2010.
Pressure Bio said it plans to submit a written plan to Nasdaq outlining its strategy to regain compliance with listing requirements. It plans to do so by May 21. If the plan is accepted by Nasdaq, the company would have 180 days to regain compliance, during which its stock will remain on Nasdaq.