NEW YORK (GenomeWeb News) — Pressure BioSciences said in a filing with the US Securities and Exchange Commission yesterday that it has reached a settlement with institutional investor Redwood Management related to a convertible debenture purchase made in mid-2013.
The South Easton, Mass.-based firm said in June that it had closed on a $500,000 one-year convertible debenture with an unnamed institutional investor, which has been revealed to be Redwood. Pressure Bio received $250,000 at the initial closing and was due to receive $100,000 on or before July 7, 2013 in a second closing and $150,000 on or before Aug. 6 in a third closing.
However, the firm said in an 8-K filing yesterday that Redwood didn't provide the additional funds after the initial tranche, so it didn't provide Redwood with additional convertible debentures.
Under the terms of the settlement agreement, Pressure Bio agreed to pay Redwood $300,000 in full satisfaction of the original debenture. It said that the agreement extinguishes any of the firm's further obligations or liabilities connected to the financing, and both parties released each other from all other claims.
Pressure Bio noted that it determined it was in the best interest of its shareholders to enter into the settlement agreement.