NEW YORK (GenomeWeb News) – Pressure BioSciences announced today an investment agreement with Ironridge BioPharma for $500,000.
Ironridge will purchase $500,000 in shares of Series E Convertible Preferred Stock in Pressure Bio. Each share of the 500 shares of Preferred Stock, which have a stated value of $1,000 per share, is convertible into about 980 shares of common stock of Pressure Bio. The Preferred Stock will accrue dividends at 10.5 percent annually, subject to a credit risk and make-whole adjustment, and is payable in cash or shares of registered common stock at Pressure Bio's discretion, the South Easton, Mass.-based firm said.
The offering is being made pursuant to a shelf registration Pressure Bio filed in September 2011 to offer as much as $15 million from time to time.
Ironridge is a division of Ironridge Global and specializes in equity investments in the life sciences. Ladenburg Thalmann, a subsidiary of Ladenburg Thalmann Financial Services, acted as the exclusive placement agent on the offering, which is expected to close on about April 11.
Pressure Bio last week was delisted from Nasdaq for not meeting two listing requirements. In its Form 10-K filed with the US Securities and Exchange Commission in February, it said it had enough cash to last until this month.
Pressure Bio filed its preliminary registration form in December to raise up to $8 million through an offering of its 5 Percent Series E Convertible Preferred Stock. That offering has not yet taken effect.