NEW YORK (GenomeWeb News) – Pressure BioSciences today said that it has reached an agreement with investors on the first half of a targeted $1.2 million private placement.
The firm said that 17 investors have agreed to purchase Pressure Bio shares for approximately $600,000 in the initial tranche. The investors include Pressure Bio's board of directors, officers of the firm, all members of the prior board of directors, and several existing investors in the company.
The transaction consists of the sale of around 120,000 units of a newly designated series of preferred stock and warrants to purchase common stock. The units are priced at $5 each and consist of one share of Series G preferred stock, which is convertible into 10 shares of common stock, and a warrant to purchase five shares of restricted common stock. The warrants are exercisable for a period of three years at an exercise price of $.50 per share.
Pressure Bio said that of the $600,000 initial tranche, $485,000 is in cash and $115,000 comes from the conversion of debt. The initial tranche is expected to close later this week with the second tranche targeted to close by the end of August.
Proceeds from the placement will be used to support further commercialization of the company's pressure cycling technology product line and for general working capital purposes.
In addition to the private placement, the South Easton, Mass.-based firm said that it has reduced the size of its board of directors from eight to five members. Five members of the board — Calvin Saravis, Donald Payne, Alan Rosenson, Alan Goldberg, and Gregory Freitag — have resigned, and two new members, Vito Mangiardi and Kevin Pollack, have been named to the board.
Mangiardi most recently served as COO/Deputy Director of Operations and Production for the Joint Genome Institute and has worked for Bio-Rad Laboratories, Baxter Travenol, Quintiles Transnational, and was president and CEO of Diagnostics Laboratories. Pollack is managing director at Paragon Capital and is president of Short Hills Capital.
In early Tuesday trade on the OTC market, shares of Pressure Bio dropped nearly 21 percent to $.31.