Company also sells $10 million units of a share, a five-year warrant
By Devika Patel
Knoxville, Tenn., Dec. 15 – Capstone Therapeutics Corp. sold a $1 million 5% convertible promissory note in a private placement on Dec. 11, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It also plans a private placement of units to raise between $7.5 million and $10 million.
The convertible investors were Biotechnology Value Fund, LP, Biotechnology Value Fund II, LP, Biotechnology Value Trading Fund OS, LP, Investment 10, LLC and MSI BVF SPV, LLC.
The note is due April 30, 2017 and may be converted into common stock at a conversion price equal to the trailing 10-day weighted average trading price of the stock, with a floor of $0.135 and a cap of $0.18 per share.
The company also plans to sell units of one common share and a warrant at $0.18 per unit.
The five-year warrant is exercisable at $0.225, a 60.71% premium to the Dec. 10 closing share price of $0.14.
Proceeds will be used to initiate preclinical development activities for drug candidate AEM-28-14, for operations and LipimetiX development activities.
The biotechnology company is based in Tempe, Ariz.
| Issuer: | Capstone Therapeutics Corp.
|
| Issue: | Convertible promissory note, units of one common share and a warrant
|
| Amount: | $8.5 million (minimum), $11 million (maximum)
|
| Stock symbol: | OTCBB: CAPS
|
| Stock price: | $0.14 at close Dec. 10
|
| Market capitalization: | $4.54 million
|
|
|
| Convertibles
|
| Amount: | $1 million
|
| Maturity: | April 30, 2017
|
| Coupon: | 5%
|
| Conversion price: | The trailing 10-day weighted average trading price of the stock, with a floor of $0.135 and a cap of $0.18
|
| Warrants: | No
|
| Investor: | Biotechnology Value Fund, LP, Biotechnology Value Fund II, LP, Biotechnology Value Trading Fund OS, LP, Investment 10, LLC and MSI BVF SPV, LLC
|
| Settlement date: | Dec. 11
|
|
|
| Units
|
| Amount: | $7.5 million (minimum), $10 million (maximum)
|
| Price: | $0.18
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.225
|
| Pricing date: | Dec. 11
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
