Biotechnology company sells shares, warrants to fund working capital
By Devika Patel
Knoxville, Tenn., Feb. 15 - Fibrocell Science, Inc. completed a private placement of series D convertible preferred stock on Feb. 9, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $3.44 million, and the company settled a similar placement for $1.48 million on Dec. 27 and one for $1.23 million on Jan. 21.
The company sold 3,436 preferreds at $1,000 per preferred.
Investors also received warrants for 6,872,000 common shares, which are exercisable at $0.50 per share for five years. The strike price reflects a 21.88% discount to the Feb. 8 closing share price of $0.64.
Each 6% preferred is convertible into common shares at an initial conversion price of $0.50 per share, which is also a 21.88% discount to the Feb. 8 closing share price.
After six months, if the volume weighted average price for each of any 20 consecutive trading days exceeds 200% of the conversion price, the preferreds will automatically convert to common stock.
Proceeds will be used for working capital.
Fibrocell is a biotechnology company based in Exton, Pa.
| Issuer: | Fibrocell Science, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $3,436,000
|
| Shares: | 3,436
|
| Price: | $1,000
|
| Dividends: | 6%
|
| Conversion price: | $0.50
|
| Warrants: | For 6,872,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Feb. 9
|
| Stock symbol: | OTCBB: FCSC
|
| Stock price: | $0.68 at close Feb. 9
|
| Market capitalization: | $14.26 million
|
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