NEW YORK (GenomeWeb News) – Pressure BioSciences has raised $1 million of a targeted $1.5 million in a private placement of units consisting of convertible preferred stock and warrants to purchase common stock.
In this first tranche of the placement, Pressure Bio sold an aggregate of 4,000 units at a purchase price of $250 per unit. The investors included existing investors in the firm and members of the company's board of directors.
Each unit consists of one share of a newly created series of preferred stock called Series K Convertible Preferred Stock, which is convertible into 1,000 shares of the firm's common stock. Each unit also includes a warrant to purchase 500 shares of Pressure Bio common stock at an exercise price equal to $0.3125 per share, with a term expiring on Dec. 12, 2016.
Each share of the Series K Convertible Preferred Stock is convertible into common stock at the option of the holder on or after the six-month anniversary of the issuance of the Series K stock. The convertible stock will also automatically convert into common stock based on other conditions, including the first anniversary of the closing.
Pressure Bio said that of the $1 million it raised through this first tranche, $572,044 was received in cash and $427,956 came from the conversion of outstanding debt.
Last month the firm reported a 7 percent increase in its third quarter revenues year over year. It finished the quarter with $66,680 in cash and cash equivalents.
In Friday morning trade on the OTC market shares of Pressure Bio were unchanged at $.27.