Deal includes 100% warrant coverage; 9% preferreds sold at $1,000 each
By Devika Patel
Knoxville, Tenn., June 18 - Generex Biotechnology Corp. settled a $1.23 million placement of series E 9% convertible preferred stock on June 17, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 1,225 preferreds at $1,000.00 apiece. The preferreds were sold in units with 100% warrant coverage. The warrants are each exercisable at $0.03 for five years. The strike price is a 25% discount to the June 14 closing share price of $0.04.
The preferreds have an effective conversion price of $0.03 per share, which is also a 25% discount to the June 14 closing price. The preferreds will accrue a 9% dividend until June 17, 2016, and, beginning on June 17, 2016 and on each one year anniversary after that date, the dividend rate will increase by an additional 3%. Generex may also redeem the preferreds.
Toronto-based Generex develops oral drug-delivery systems and technologies.
| Issuer: | Generex Biotechnology Corp.
|
| Issue: | Series E convertible preferred stock
|
| Amount: | $1,225,000
|
| Preferreds: | 1,225
|
| Price: | $1,000.00
|
| Dividends: | 9%
|
| Conversion price: | $0.03
|
| Call: | Yes
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.03
|
| Settlement date: | June 17
|
| Stock symbol: | OTCBB: GNBT
|
| Stock price: | $0.04 at close June 14
|
| Market capitalization: | $18.03 million
|
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