By Sheri Kasprzak
New York, Aug. 8 - Large Scale Biology Corp. said it has received a $15 million equity line from Brittany Capital Management Ltd.
Under the terms of the equity line, Large Scale may sell shares to Brittany at a 7% discount to the then-market price of the company's stock over a 10 trading-day period.
There is a $2 million minimum to each draw over the three-year term of the agreement.
In other news, Large Scale raised $1 million from promissory notes issued to company chief executive officer Kevin Ryan and board chairman Robert Erwin.
The notes bear interest at Prime rate plus 200 basis points or 7.25%, whichever is greater, and mature on Jan. 31, 2006.
The notes may be prepaid at any time without penalty.
The two investors also received warrants for a total of 617,000 shares, exercisable at $0.81 each from Feb. 5, 2006 through Feb. 5, 2011.
Proceeds from the equity line will be used to retire a bridge debt and for working capital. Proceeds from the notes will be used for working capital.
Based in Vacaville, Calif., Large Scale Biology develops therapeutics and industrial proteins, vaccines and diagnostic products to characterize and treat diseases.
Equity agreement
| Issuer: | Large Scale Biology Corp.
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| Issue: | Standby equity distribution agreement
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| Amount: | $15 million
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| Tenor: | Three years
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| Price: | 7% discount to then-applicable market price
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| Investor: | Brittany Capital Management Ltd.
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| Settlement date: | Aug. 5
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| Stock price: | $0.81 at close Aug. 5
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| Promissory note
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| Issuer: | Large Scale Biology Corp.
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| Issue: | Promissory note
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| Amount: | $1 million
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| Maturity: | Jan. 31, 2006
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| Coupon: | The greater of Prime plus 200 basis points or 7.25%
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| Call: | May be prepaid at any time without penalty
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| Warrants: | For 617,000 shares
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| Warrant expiration: | Feb. 5, 2011 (from Feb. 5, 2006)
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| Warrant strike price: | $0.81
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| Investors: | Kevin Ryan and Robert Erwin
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| Settlement date: | Aug. 5
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| Stock price: | $0.81 at close Aug. 5
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