Deal with warrants funds working capital, general corporate purposes
By Devika Patel
Knoxville, Tenn., March 31 – MetaStat, Inc. said it settled a $3.4 million private placement of its series B preferred stock. The deal raised $1.26 million on Jan. 6.
The preferreds are convertible into common stock at $0.55 per share, which is a 37.5% premium to the Jan. 5 closing share price of $0.40.
Investors also received series A warrants for 4,621,700 common shares, exercisable at $0.70, and series B warrants for 455,000 shares, exercisable at $0.55. Both warrants expire on March 31, 2020. The strike prices are 75% and 37.5% premiums to the Jan. 5 closing share price.
The series B warrants were only issued to investors who bought $500,000 of preferreds by Dec. 31, 2014.
H.C. Wainwright & Co., LLC was the lead agent; Alere Financial Partners, LLC was the co-agent.
MetaStat sold about 229 preferreds, convertible into 2,286,363 common shares, series A warrants for 1,714,771 shares and series B warrants for 455,000 shares in the first tranche. Of the first-tranche proceeds, $90,000 was raised through debt conversion.
Proceeds will be used for working capital and general corporate purposes.
MetaStat is a life science company based in the Woodlands, Texas.
| Issuer: | MetaStat, Inc.
|
| Issue: | Series B preferred stock
|
| Amount: | $3.4 million
|
| Conversion price: | $0.55
|
| Warrants: | For 5,076,700 shares
|
| Warrant expiration: | March 31, 2020
|
| Warrant strike prices: | $0.70 (for 4,621,700 shares), $0.55 (for 455,000 shares)
|
| Agents: | H.C. Wainwright & Co., LLC (lead), Alere Financial Partners, LLC (co-agent)
|
| Settlement dates: | Jan. 6 (for $1,257,500), March 31
|
| Stock symbol: | OTCBB: MTST
|
| Stock price: | $0.40 at close Jan. 5
|
| Market capitalization: | $16.48 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
