By Sheri Kasprzak
New York, Aug. 17 - Millennium Biotechnologies Group, Inc. entered into agreements to close a $2.6 million private placement.
The company intends to sell 13,000 shares of series E senior convertible preferreds at $200 each to a group of institutional investors led by Iroquois Capital, LP.
The 10% preferreds are convertible into common shares at $0.25 each.
The investor will also come away with warrants for 10.4 million shares, exercisable for five years at $0.25 each.
Connected to the deal, Iroquois, as lead investor, will receive 100 shares of series F convertible preferreds.
Also, Millennium must convert $2,926,000 in existing debt into series E preferred stock and raise another $400,000 through the sale of series E preferreds under the same terms.
Proceeds will be used to repay existing debt and provide working capital.
Basking Ridge, N.J.-based Millennium develops nutritional supplements used to support immune system-compromised patients with HIV/AIDS, hepatitis C, cancer and other chronic illnesses.
| Issuer: | Millennium Biotechnologies Group, Inc.
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| Issue: | Series E convertible preferreds
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| Amount: | $2.6 million
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| Shares: | 13,000
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| Price: | $200.00
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| Dividends: | 10%
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| Conversion price: | $0.25
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| Warrants: | For 10.4 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.25
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| Investors: | Iroquois Capital, LP (lead)
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| Settlement date: | Aug. 17
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| Stock symbol: | OTCBB: MBTG
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| Stock price: | $0.325 at close Aug. 16
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