10-year note being sold with five-year warrants for 25 million shares
By Devika Patel
Knoxville, Tenn., Aug. 9 – Fibrocell Science, Inc. arranged a $25 million private placement of 10-year convertible promissory notes on Aug. 9, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 4% notes convert to common stock at the greater of $1.13625 and the last closing bid price at settlement plus $0.12625. The note may be put.
Investors also received five-year warrants for 25 million common shares. The warrants are exercisable at the greater of $1.50 per share and the last closing bid price at settlement.
Proceeds will be used for clinical and preclinical development and general corporate purposes.
The company also said it cancelled plans for its public offering of common stock and warrants that was announced on Monday and would have been conducted through bookrunner Cantor Fitzgerald & Co. and co-managers Roth Capital Partners, LLC and Griffin Securities, Inc.
Fibrocell is a biotechnology company based in Exton, Pa.
| Issuer: | Fibrocell Science, Inc.
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| Issue: | Convertible promissory notes
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| Amount: | $25 million
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| Maturity: | 10 years
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| Coupon: | 4%
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| Conversion price: | The greater of $1.13625 and the last closing bid price at settlement plus $0.12625
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| Put: | Yes
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| Warrants: | For 25 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | The greater of $1.50 per share and the last closing bid price at settlement
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| Settlement date: | Aug. 9
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| Stock symbol: | Nasdaq: FCSC
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| Stock price: | $1.00 at close Aug. 8
|
| Market capitalization: | $51.98 million
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