By LLuvia Mares
New York, Sept. 17 - VirtualScopics, Inc. wrapped up a $4.35 million private placement of series B convertible preferred stock and warrants.
The preferreds are convertible at an initial conversion price of $1.2043 per share, a level based on the volume weighted average of recent market prices. If all are converted, the company will issue 3,612,057 shares.
The series B preferred stock carries a dividend of 8%, payable monthly in either cash or in shares.
Warrants to purchase 2,167,234 shares were also issued in the transaction. Half of the shares will have an initial exercise price at the conversion price per share of $1.2043 and half at a 15% premium, equivalent to $1.3849 per share.
BridgePointe Master Fund Ltd. (managed by Roswell Capital Partners) was the lead investor and BayStar Capital III Investment Fund, LP also participated.
Canaccord Adams, Inc. acted as placement agent.
Proceeds from the offering will be used to expand the company's sales, marketing efforts, software, technology enhancements and for ongoing operations.
Rochester, N.Y.-based VirtualScopics specializes in imaging solutions to accelerate drug and medical device development.
Issuer: VirtualScopics, Inc.
Issue: Series B convertible preferred stock
Amount: $4.35 million
| Dividend: | i8%
|
| Price: | $1,000
|
| Conversion price: | $1.2043
|
| Conversion ratio: | Into 3,612,057 shares
|
| Warrants: | for 2,167,234 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $1.2043 for half, $1.3849 for half
|
| Placement agent: | Canaccord Adams, Inc.
|
| Investors: | BridgePointe Master Fund Ltd. (lead), BayStar Capital III Investment Fund, LP
|
| Settlement date: | Sept. 17
|
| Stock symbol: | Nasdaq: VSCP
|
| Stock price: | $1.20 at close Sept. 14
|
© 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.
