10% three-year notes are being sold in units with five-year warrants
By Devika Patel
Knoxville, Tenn., June 27 - Omni Bio Pharmaceutical, Inc. completed a $150,000 tranche of a $2 million private placement of senior secured convertible promissory notes on June 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company raised $500,000 on May 18, $187,500 on May 31 and $225,000 on June 11.
The 10% notes were sold in units, priced at $1.00 apiece, with each unit consisting of one $1.00 note and a warrant. The notes convert to common stock at $1.00 per share, which is a 66.67% premium to the May 17 closing share price of $0.60.
The notes mature on May 18, 2015 and may be prepaid.
The warrants are each exercisable at $1.50 through May 18, 2017. The strike price is a 150% premium to the May 17 closing share price.
Settlement of the final tranche is expected June 30.
Proceeds will be used for general working capital requirements.
The biopharmaceutical company is based in Greenwood Village, Colo.
| Issuer: | Omni Bio Pharmaceutical, Inc.
|
| Issue: | Units of a $1.00 senior secured convertible promissory note and a warrant
|
| Amount: | $2 million
|
| Units: | 2 million
|
| Price: | $1.00
|
| Maturity: | May 18, 2015
|
| Coupon: | 10%
|
| Conversion price: | $1.00
|
| Call: | Yes
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | May 18, 2017
|
| Warrant strike price: | $1.50
|
| Settlement dates: | May 18 (for $500,000), May 31 (for $187,500), June 11 (for $225,000), June 26 (for $150,000), June 30
|
| Stock symbol: | OTCBB: OMBP
|
| Stock price: | $0.60 at close May 17
|
| Market capitalization: | $17.29 million
|
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