By Devika Patel
Knoxville, Tenn., June 3 - Genesis Pharmaceuticals Enterprises, Inc. said it sold $30 million of its convertible notes.
The three-year notes carry a 6% coupon and are convertible into common shares at a conversion price of $0.20 per share.
Investors also received 75 million five-year warrants, exercisable at $0.25.
The lead investor in the private placement was Pope Investments, LLC.
Proceeds will be used to pay for the rights to manufacture and distribute a new Chinese class I drug, Ligustrazine Ferulic Acid Acetate, a cardiac cerebral vascular medicine that helps to reduce blood clotting and prevent blood platelets from clumping together, and for the marketing expenses associated with the launch of the drug.
Genesis is a pharmaceutical company based in Laiyang, China.
| Issuer: | Genesis Pharmaceuticals Enterprises, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $30 million
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.20
|
| Warrants: | 75 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.25
|
| Investor: | Pope Investments, LLC (lead)
|
| Settlement date: | June 3
|
| Stock symbol: | OTCBB: GTEC
|
| Stock price: | $0.29 at close June 2
|
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