NEW YORK (GenomeWeb News) – Pressure BioSciences today announced the closing of the third and final tranche of its Series J Private Placement of Convertible Preferred Stock and Warrants that raised a total $2 million.
The first and second tranches closed in February and March. Investors in the Series J round included all members of Pressure Bio's board, as well as new and existing accredited investors in the company.
The round consisted of the sale of 5,087 units of Series J Preferred Stock and warrants to purchase Pressure Bio's stock at $400 per unit. Each unit comprises one share of Series J Preferred Stock, and one warrant to purchase 1,000 shares of restricted common stock. Each share of the preferred stock is convertible into 1,000 shares of common stock at an equivalent price of $.40 per share, and the warrants are exercisable at a price of $.40 per share.
Of the total amount raised in the round, $921,000 was in cash, and $1.1 million was from the conversion of debt, Pressure Bio said.
The South Easton, Mass.-based firm also announced it closed last week on a $500,000 one-year convertible debenture with an unnamed institutional investor. Pressure Bio received $250,000 at the initial closing and will 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.
A month ago, the firm warned of a pressing cash shortage and outlined plans to increase its cash position. Today, Pressure Bio President and CEO Richard Schumacher said that the Series J round and $500,000 notes closing "have successfully achieved the initial objectives of our plan."
"Our next goal is to greatly strengthen our cash position before year-end. We believe this will enable us to take full advantage of the significant breakthroughs we have recently announced in our patented pressure cycling technology platform, as well as to continue to expand our customer base through sales of our existing and enabling PCT product line," Schumacher said. "We plan to achieve this goal through a combination of financings, continued reductions in costs, and measurable increases in revenue."