NEW YORK (GenomeWeb News) – Pressure BioSciences has raised around $1.7 million through a private placement of units, the firm disclosed today in a filing with the US Securities and Exchange Commission.
The company said that it sold 4,257 units at a price of $400 per unit. The $1.7 million it raised is the first tranche of a targeted $2 million, said Pressure Bio, adding that it expects to close one or more tranches on or before Feb. 28, 2013.
Each unit purchased in the initial tranche consists of one share of newly created Series J Convertible Preferred Stock, which is convertible into 1,000 shares of the firm's common stock, and a warrant to purchase 1,000 shares of common stock at an exercise price equal to $.40 per share, with a term expiring on Feb. 6, 2016.
Of the initial $1.7 million Pressure Bio received, $590,000 came in the form of cash and $1.1 million came from the conversion of outstanding indebtedness and accrued board of directors' fees. The purchasers in the initial tranche consisted of existing and new investors in the firm, as well as members of Pressure Bio's board of directors.