Published on 6/8/2012 in the Prospect News PIPE Daily.
Fibrocell completes $7.85 million private placement of preferred units
Biotechnology company sells preferreds with warrants for 4,000 shares
By Devika Patel
Knoxville, Tenn., June 8 - Fibrocell Science, Inc. settled a $1.19 million fourth tranche of a $7.85 million private placement of series E convertible preferred stock on June 7, according to an 8-K filed Friday with the Securities and Exchange Commission. The company raised $3.35 million in the first tranche on May 14, $2.36 million on May 24 and $945,000 on May 30.
The company sold 7,854 preferreds at $1,000 per preferred. It sold 3,353 preferreds in the first tranche, 2,364 preferreds in the second, 945 preferreds in the third tranche and 1,192 preferreds in the fourth tranche.
Each share of preferred stock will be convertible at any time into a number of shares determined by dividing the stated value of each preferred by the conversion price, which is $0.25. The company may force conversion after six months if the volume-weighted average price for the 20 consecutive trading days exceeds 200% of the conversion price.
Investors also received warrants for 4,000 common shares for every preferred bought. The warrants are each exercisable at $0.30 per share for five years. The strike price reflects a 9.09% discount to the $0.33 closing share price on May 14.
Fibrocell is a biotechnology company based in Exton, Pa.
| Issuer: | Fibrocell Science, Inc.
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| Issue: | Series E convertible preferred stock
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| Amount: | $7,854,000
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| Shares: | 7,854
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| Price: | $1,000
|
| Conversion price: | $0.25
|
| Call: | May force conversion after six months if the volume-weighted average price for the 20 consecutive trading days exceeds 200% of the conversion price
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| Warrants: | 4,000 warrants per preferred
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.30
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| Settlement date: | May 14 (for $3,353,000), May 24 (for $2,364,000), May 30 (for $945,000), June 7 (for $1,192,000)
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| Stock symbol: | OTCBB: FCSC
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| Stock price: | $0.22 at close May 23
|
| Market capitalization: | $25.56 million
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