Senior secured convertible debentures sold with 3,892,857 warrants
By Devika Patel
Knoxville, Tenn., July 23 – Pressure BioSciences, Inc. said it completed a $2.18 million initial tranche of a $5 million private placement of senior secured convertible debentures. Of the proceeds, $1.52 million was received in cash, and $660,000 was from the conversion of promissory notes.
The debentures were sold with warrants for 3,892,857 shares.
The warrants are each exercisable at $0.40, a 42.86% premium to the July 22 closing share price of $0.28. The debenture converts to stock at $0.28 per share, which is identical to the July 22 closing price.
Settlement of the final tranche is expected Aug. 7.
Proceeds from the first tranche will be used to increase marketing and sales personnel, continue building the installed base of instruments and utilization of consumables and retire a significant portion of variable-priced convertible debt that the company arranged to facilitate growth while additional equity capital was being raised. Proceeds from any additional closings will be used to pay off remaining variable-priced convertible debt.
South Easton, Mass.-based Pressure BioSciences develops, markets and sells laboratory instrumentation and related consumables for the company's pressure-cycling technology, which uses cycles of hydrostatic pressure between ambient and ultra-high levels to control biomolecular interactions for the sample preparation market.
| Issuer: | Pressure BioSciences, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $5 million
|
| Conversion price: | $0.28
|
| Warrants: | For 3,892,857 shares
|
| Warrant strike price: | $0.40
|
| Settlement dates: | July 23 (for $2.18 million), Aug. 7
|
| Stock symbol: | OTCBB: PBIO
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| Stock price: | $0.28 at close July 22
|
| Market capitalization: | $5.66 million
|
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