Promissory note sold with five-year warrants for 25 million shares
By Devika Patel
Knoxville, Tenn., Sept. 8 – Fibrocell Science, Inc. completed an $18,087,500 tranche of a $25 million private placement of convertible promissory notes on Sept. 7, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced on Aug. 9 and may raise another $6,912,500.
The notes will mature upon the earlier of Sept. 7, 2026 and 180 days after the company’s product candidate, FCX-007, is approved for the treatment of recessive dystrophic epidermolysis bullosa by the U.S. Food and Drug Administration.
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 after five years with 180 days’ notice.
Investors also will receive five-year warrants for 25 million common shares, with warrants for 18,087,500 shares issued in the initial tranche. 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.
Fibrocell is a biotechnology company based in Exton, Pa.
| Issuer: | Fibrocell Science, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $25 million
|
| Maturity: | Sept. 7, 2026
|
| Coupon: | 4%
|
| Conversion price: | The greater of $1.13625 and the last closing bid price at settlement plus $0.12625
|
| Put: | After five years
|
| Warrants: | For 25 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | The greater of $1.50 per share and the last closing bid price at settlement
|
| Pricing date: | Aug. 9
|
| Settlement date: | Sept. 7 (for $18,087,500)
|
| Stock symbol: | Nasdaq: FCSC
|
| Stock price: | $1.00 at close Aug. 8
|
| Market capitalization: | $38.23 million
|
|
|
|
|
|
|
© 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.
