By Sheri Kasprzak
New York, May 1 - Dobi Medical International, Inc. said it completed a private placement of discounted secured convertible debentures. The company issued $6 million in debentures and received $5.25 million in proceeds.
The zero-coupon debentures due Aug. 28, 2007 were priced at 87 and are convertible into 75 million shares at $0.08 each.
The investors received warrants for 75 million shares, exercisable at $0.15 each for eight months and warrants for 37.5 million shares, exercisable for three years at $0.50 each.
The proceeds will be used for a clinical trial research study, sales and marketing efforts, working capital and general corporate purposes.
Connected to the deal, Dobi reduced the conversion price on its series A preferreds to $0.37 from $1.31.
Dobi Medical, based in Mahwah, N.J., is a medical imaging company focused on diagnosing malignant breast cancer.
Issuer: | Dobi Medical International, Inc.
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Issue: | Secured convertible debentures
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Amount: | $6 million
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Proceeds: | $5.25 million
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Maturity: | Aug. 28, 2007
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Coupon: | 0%
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Price: | 87
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Conversion ratio: | Into 75 million shares
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Conversion price: | $0.08
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Warrants: | For 112.5 million shares
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Warrant expiration: | Eight months for 75 million; three years for 37.5 million
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Warrant strike price: | $0.15 for 75 million; $0.50 for 37.5 million
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Settlement date: | May 1
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Stock symbol: | OTCBB: DBMI
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Stock price: | $0.08 at close May 1
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