Discount 5% notes sold with 1.5 million warrants, 3.75 million shares
By Devika Patel
Knoxville, Tenn., July 6 – Innovus Pharmaceuticals, Inc. sold $1.65 million of convertible promissory notes at a 10% original issue discount for $1.5 million in a private placement on June 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Rodman & Renshaw and Garden State Securities, Inc. were the agents.
The 5% notes are due on July 30, 2017. They convert to common stock at $0.25 per share, a 13.64% premium to $0.22, the June 29 closing share price. The notes may be prepaid at 110.
The three investors also received warrants for 1.5 million shares and 3.75 million common shares as a bonus. Each five-year warrant is exercisable at $0.40, an 81.82% premium to the June 29 closing share price.
Proceeds will be used for general working capital purposes.
The pharmaceutical company is based in Sierra Madre, Calif.
| Issuer: | Innovus Pharmaceuticals, Inc.
|
| Issue: | Convertible promissory notes, 3.75 million common shares
|
| Amount: | $1.65 million
|
| Maturity: | July 30, 2017
|
| Price: | 10% original issue discount ($1.5 million)
|
| Coupon: | 5%
|
| Conversion premium: | 13.64%
|
| Conversion price: | $0.25
|
| Call: | At 110
|
| Warrants: | For 1.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.40
|
| Agents: | Rodman & Renshaw and Garden State Securities, Inc.
|
| Settlement dates: | June 30
|
| Stock symbol: | OTCBB: INNV
|
| Stock price: | $0.22 at close June 29
|
| Market capitalization: | $16.47 million
|
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