By LLuvia Mares
New York, Aug. 16 - Health Discovery Corp. announced Thursday that it entered into an agreement for a maximum $2.5 million private placement of stock with warrants.
Under the private placement, Health Discovery expects to raise a minimum of $1.5 million to a maximum of $2.5 million in new equity funding.
The stock will be sold at $0.08 to several institutions and accredited individuals. Health Discovery also has non-binding commitments from other individuals.
In addition to the private placement, up to $2,153,900 in outstanding debt and accrued interest will be converted to stock as part of the transaction.
Purchasers of common shares, including those converting indebtedness, will be given a warrant to acquire an equal number of restricted common shares at a fixed price of $0.14 each and a warrant to acquire an equal number of restricted common shares at a fixed price of $0.19, each exercisable until September 2010.
At the maximum amount, 58,173,746 shares of common stock will be issued. The warrants could result in the issuance of up to 116,347,492 additional restricted common shares upon exercise and the payment of the aggregate exercise price of $19,197,336.
The financing is expected to close Sept. 7.
Savannah, Ga.-based Health Discovery expects the transaction will strengthen its balance sheet by eliminating debt as well as providing funding for the business.
Health Discovery is a biology-oriented biomarker discovery company providing all aspects of first-phase biomarker discovery.
| Issuer: | Health Discovery Corp.
|
| Issue: | Stock
|
| Amount: | Minimum of $1,500,000 to a maximum of $2,500,000
|
| Units: | 58,173,746 (maximum), includes conversion of debt
|
| Price: | $0.08
|
| Warrants: | For up to 116,347,492 shares, half exercisable at $0.14 and half at $0.19
|
| Warrant expiration: | September 2010
|
| Warrant strike price: | $0.14 and $0.19
|
| Pricing date: | Aug. 15
|
| Stock symbol: | OTCBB: HDVY
|
| Stock Price: | $0.08 at close Aug. 15
|
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