Deal sells 12% preferreds along with 150% five-year warrant coverage
By Devika Patel
Knoxville, Tenn., Sept. 3 – Guided Therapeutics, Inc. said it increased its private placement of 12% series C convertible preferred stock to $4.55 million from $4 million.
The deal priced on June 29, raised about $2.5 million on June 30 and the company plans to accelerate the closing of $1.3 million, or 1,734 preferreds with warrants for about 27.3 million shares, presently. A final $750,000 tranche will settle in the fourth quarter.
The preferreds convert to common stock at $0.095 per share.
Investors also will receive 150% warrant coverage. Each warrant is exercisable at $0.095 for five years.
The strike price and conversion price are a 13.64% discount to the June 26 closing share price of $0.11.
Ladenburg Thalmann & Co. Inc. is the agent.
Proceeds will be used for manufacturing and marketing of the Guided Therapeutics LuViva Advanced Cervical Scan and to repay a senior convertible note.
The medical technology company is based in Norcross, Ga.
| Issuer: | Guided Therapeutics, Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $4.55 million
|
| Dividends: | 12%
|
| Conversion price: | $0.095
|
| Warrants: | 150% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.095
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | June 29
|
| Upsized: | Sept. 3
|
| Settlement date: | June 30 (for about $2.5 million)
|
| Stock symbol: | OTCBB: GTHP
|
| Stock price: | $0.11 at close June 26
|
| Market capitalization: | $6.81 million
|
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