By Sheri Kasprzak
New York, April 4 - Pluristem Life Systems, Inc. said it wrapped a $3 million private placement of convertible debentures.
The 7% senior secured debentures are due April 3, 2008 and are convertible into shares at the lower of 75% of the volume-weighted average price of the company's stock for the 20 trading days before conversion or the price per share of any equity or convertible financing the company embarks upon while the convertible notes are outstanding.
The investors will receive warrants for 47,393,364 shares, exercisable at $0.075 each for three years.
The deal was non-brokered.
Proceeds will be used for the development of the company's suite of stem cell therapy products. The remainder will be used for working capital.
In other news, Doron Shorrer, the company's chairman, has resigned. Zami Aberman, the company's chief executive officer, was appointed chairman.
Pluristem, based in Haifa, Israel, is a biotechnology company focused on developing stem cell therapies used to treat severe blood disorders.
| Issuer: | Pluristem Life Systems, Inc.
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| Issue: | Convertible debentures
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| Amount: | $3 million
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| Maturity: | April 3, 2008
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| Coupon: | 7%
|
| Price: | Par
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| Yield: | 7%
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| Conversion price: | The lesser of 75% of the lowest VWAP for the 20 trading days before conversion or the price per share of any subsequent equity or convertible financing while the debentures are outstanding
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| Warrants: | For 47,393,364 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.075
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| Placement agent: | Non-brokered
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| Settlement date: | April 3
|
| Stock symbol: | OTCBB: PLRS
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| Stock price: | $0.074 at close April 4
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