Company offers unsecured convertible promissory notes to Alpha Venture
By Devika Patel
Knoxville, Tenn., Oct. 1 – CytoDyn Inc. settled a $2 million private placement of unsecured convertible promissory notes with Alpha Venture Capital Partners, LP on Sept. 26, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The 5% notes are due on Sept. 26, 2016 and are initially convertible into common stock at $1.00 per share, a 26.58% premium to the Sept. 25 closing share price of $0.79. The note may be prepaid without a penalty.
Investors also received warrants for 250,000 common shares, which expire on Dec. 31, 2019. The warrants are exercisable at $0.50, a 36.71% discount to the Sept. 25 closing price.
Based in Santa Fe, N.M., CytoDyn develops DNA-based vaccines and other products.
| Issuer: | CytoDyn Inc.
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| Issue: | Unsecured convertible promissory notes
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| Amount: | $2 million
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| Maturity: | Sept. 26, 2016
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| Coupon: | 5%
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| Conversion price: | $1.00
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| Conversion premium: | 26.58%
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| Call: | Yes
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| Warrants: | For 250,000 shares
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| Warrant expiration: | Dec. 31, 2019
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| Warrant strike price: | $0.50
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| Investor: | Alpha Venture Capital Partners, LP
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| Settlement date: | Sept. 26
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| Stock symbol: | OTCBB: CYDY
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| Stock price: | $0.79 at close Sept. 25
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| Market capitalization: | $43.49 million
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