Discounted promissory notes sold with 3 million five-year warrants
By Devika Patel
Knoxville, Tenn., July 29 – Innovus Pharmaceuticals, Inc. sold another $828,889 of convertible promissory notes at a 10% original issue discount for $750,000 in a private placement on July 25, according to an 8-K filed Friday with the Securities and Exchange Commission. Rodman & Renshaw was the agent for the offering, which sold $2.48 million of notes for $2.25 million on July 5 and July 15.
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 July 1 closing share price.
The investors also received warrants for 3 million shares. Each five-year warrant is exercisable at $0.40, an 81.82% premium to the July 1 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
|
| Amount: | $3,303,889
|
| Maturity: | July 30, 2017
|
| Price: | 10% original issue discount ($3 million)
|
| Coupon: | 5%
|
| Conversion premium: | 13.64%
|
| Conversion price: | $0.25
|
| Warrants: | For 2.25 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.40
|
| Agent: | Rodman & Renshaw
|
| Settlement dates: | July 5 and July 15 ($2,475,000 of notes for $2.25 million), July 25 ($828,889 of notes for $750,000)
|
| Stock symbol: | OTCBB: INNV
|
| Stock price: | $0.22 at close July 1
|
| Market capitalization: | $23.08 million
|
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