Deal consists of 1,853.125 series A preferreds, 100% warrant coverage
By Devika Patel
Knoxville, Tenn., Dec. 23 – GenSpera, Inc. arranged a $1,853,125 private placement of series A convertible preferred stock on Dec. 23, according to an 8-K filed Wednesday with the Securities and Exchange Commission. H.C. Wainwright & Co., LLC is the agent.
The company will sell 1,853.125 preferreds at $1,000 apiece.
The 0% preferreds may initially be converted into 12,345,167 common shares at $0.15 per share, a 28.57% discount to the $0.21 closing price of the stock on Dec. 22.
Investors also will receive 100% warrant coverage, with half of the warrants each exercisable at $0.30 for five years and the remaining half each exercisable at $0.30 for 18 months. The strike price is a 42.86% premium to the Dec. 22 closing price.
Settlement is expected Dec. 29.
GenSpera is a San Antonio-based pharmaceutical company focused on the discovery and development of pro-drug cancer therapeutics.
| Issuer: | GenSpera, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $1,853,125
|
| Preferreds: | 1,853.125
|
| Price: | $1,000
|
| Dividends: | 0%
|
| Conversion price: | $0.15
|
| Conversion ratio: | Into 12,345,167 shares
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years for half, 18 months for other half
|
| Warrant strike price: | $0.30
|
| Agent: | H.C. Wainwright & Co., LLC
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Stock symbol: | OTCBB: GNSZ
|
| Stock price: | $0.21 at close Dec. 22
|
| Market capitalization: | $6.37 million
|
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