Convertible securities sold to Seaside in two tranches of $2.5 million each
By Devika Patel
Knoxville, Tenn., Dec. 22 - NanoViricides, Inc. said it completed a registered direct offering of 10% series B convertible preferred stock with Seaside 88, LP on Dec. 21. The company raised $2.5 million in the $5 million offering on Sept. 16 and raised the remaining $2.5 million in the second tranche.
The company sold a total of 500,000 preferreds at $10.00 apiece in two equal tranches of 250,000 preferreds each. Of the preferreds, 40,000 will be automatically converted into common stock on Jan. 3, with additional conversions following every two weeks.
The conversion price will be equal to the $10 purchase price per share of the preferred stock divided by the lesser of (1) 85% of the 10-day daily volume weighted average trading price of the common stock, or (2) 88% of the volume weighted average trading price for the trading day immediately prior to a conversion date.
Midtown Partners & Co., LLC was the agent.
Proceeds will be used for general corporate purposes.
This placement is identical to another deal completed with the same investor in May, which permitted Seaside to purchase an additional $5 million of preferreds within six months. The investor has now fully exercised this option.
NanoViricides is a West Haven, Conn., biopharmaceutical company.
| Issuer: | NanoViricides, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $5 million
|
| Shares: | 500,000
|
| Price: | $10.00
|
| Dividend: | 10%
|
| Warrants: | No
|
| Agent: | Midtown Partners & Co., LLC
|
| Investor: | Seaside 88, LP
|
| Pricing date: | Sept. 16
|
| Settlement dates: | Sept. 16 (for $2.5 million), Dec. 21 (for $2.5 million)
|
| Stock symbol: | OTCBB: NNVC
|
| Stock price: | $1.07 at close Sept. 16
|
| Market capitalization: | $84.47 million
|
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