Deal includes warrants; notes sold in two tranches on July 20, July 24
By Devika Patel
Knoxville, Tenn., July 28 – Cell Source, Inc. settled a $100,000 private placement of promissory notes with David Zolty on July 20, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It sold $145,000 of 10% convertible promissory notes to three investors on July 24.
The 0% Zolty notes are due July 20, 2016 and are not convertible.
Zolty received a warrant for 100,000 common shares.
The convertibles are due in one year and are convertible into common stock at a price equal to the lesser of $0.75 and 70% of the average daily volume-weighted average price of the stock for the 20 trading days preceding the maturity date. The convertibles investors received warrants for 145,000 shares.
The warrants are each exercisable at $0.75 for four years. The strike price is a 40% discount to the July 17 closing share price of $1.25.
The Las Vegas company develops and commercializes preclinical cell therapy treatments that have shown promising results in treating animals suffering from blood cancers such as leukemia and lymphoma.
| Issuer: | Cell Source, Inc.
|
| Issue: | Promissory notes, convertible promissory notes
|
| Amount: | $245,000
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.75
|
| Stock symbol: | OTCBB: CLCS
|
| Stock price: | $1.25 at close July 17
|
| Market capitalization: | $28.29 million
|
|
|
| Notes
|
| Amount: | $100,000
|
| Maturity: | July 20, 2016
|
| Coupon: | 0%
|
| Warrants: | For 100,000 shares
|
| Warrant expiration: | July 20, 2019
|
| Investor: | David Zolty
|
| Settlement date: | July 20
|
|
|
| Convertibles
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| Amount: | $145,000
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Conversion price: | The lesser of $0.75 and 70% of the average daily volume-weighted average price of the stock for the 20 trading days preceding the maturity date
|
| Warrants: | For 145,000 shares
|
| Warrant expiration: | July 24, 2019
|
| Settlement date: | July 24
|
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