NEW YORK (GenomeWeb News) – Pressure BioSciences said on Thursday that it raised $630,360 in the third tranche of a private placement.
In a document filed with the US Securities and Exchange Commission, the company said it entered into an agreement last week to sell to certain unnamed existing and new investors 1,854 units at $340 per unit. Each unit consists of one share of Series K Convertible Preferred Stock — which is convertible into 1,000 shares of Pressure Bio's common stock — and a warrant to purchase 500 shares of the company's common stock at an exercise price of $.425 per share, with a term expiring on Feb. 28, 2017.
The sale is the third tranche of a private placement disclosed by the company in December to raise $1.5 million. The placement was expected to close on or before Jan. 31, 2014, but on Jan. 29, the company's board voted to increase the subscription amount of the placement by $718,750. The board also voted to extend the private placement to Feb. 28, 2014.
Last week, the board increased the subscription amount again to a total of $3.5 million and extended the closing date to April 4, 2014. The initial tranche of the placement raised $1 million, and the second tranche brought in more than $1.2 million. The total consideration received from the placement is about $2.8 million, comprised of approximately $2.0 million in cash and $820,706 from the conversion of outstanding indebtedness and board fees, Pressure Bio said. It added that one or more additional tranches may close on or before April 4.
The South Easton, Mass.-based company previously raised $2 million in a Series J private placement of Convertible Stock and Warrants last June.