Company sells 15% discounted one-year convertible notes with warrants
By Devika Patel
Knoxville, Tenn., Oct. 28 - Advaxis Inc. said it arranged a private placement of original issue discount convertible promissory notes. The deal will raise about $2 million with an original issue discount of 15% for a principal of approximately $2.3 million. Rodman & Renshaw, LLC is the agent.
The one-year notes will convert to common shares at $0.15 per share. However, only 85% of the note may be converted prior to maturity.
In addition, the investors received 50% warrant coverage. Each warrant is exercisable at $0.15 for three years.
The conversion price of the notes and strike price of the warrants are identical to the Oct. 27 closing share price.
Insiders are expected to participate. The proceeds will include cash and the cancellation of $400,000 of debt.
Settlement is expected Oct. 31.
"This financing will provide additional operating funds between now and the announcement of interim results for our Phase 2 clinical trial on cervical cancer currently under way in India. I am particularly pleased that many of those supporting this financing have invested in the company previously," chairman and chief executive officer Thomas A. Moore said in a press release. "This small group of investors also includes the company's chief financial officer and myself."
Advaxis is a biotechnology company based in Princeton, N.J., that is developing cancer vaccines.
| Issuer: | Advaxis Inc.
|
| Issue: | Original issue discount convertible promissory notes
|
| Amount: | $2.3 million (approximate)
|
| Maturity: | One year
|
| Price: | 15% discount (about $2 million)
|
| Conversion price: | $0.15
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.15
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Stock symbol: | OTCBB: ADXS
|
| Stock price: | $0.15 at close Oct. 27
|
| Market capitalization: | $36.77 million
|
© 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.
