By Sheri Kasprzak
Atlanta, March 2 - Refocus Group Inc. said it has closed a private placement for $7 million.
The offering is half of a $14 million commitment from Medcare Investment Fund III Ltd.
The company sold 280,000 shares of series A-1 convertible preferred shares at $25.00 each.
The preferreds are convertible into common shares at $0.25 each.
The investors also received warrants for up to 133,334 shares of series A-3 convertible preferred stock, exercisable for two years. The series A-3 preferreds are convertible into common shares at $0.30 each.
Medcare will buy an additional 280,000 shares of series A-2 preferred, convertible into common shares at $0.25 each, within one year.
Based in Dallas, Refocus Group is a medical device company focused on vision disorders. It plans to use the proceeds for the repayment of debt, the expansion of its scleral spacing procedure clinical trials program and capital expenditures and corporate purposes.
| Issuer: | Refocus Group Inc.
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| Issue: | Series A-1 convertible preferred stock
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| Amount: | $7 million
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| Shares: | 280,000
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| Price: | $25.00
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| Conversion price: | $0.25
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| Warrants: | For up to 133,334 shares of series A-3 preferreds
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| Warrant expiration: | Two years
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| Warrant strike price: | Convertible into common shares at $0.30
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| Investors: | Medcare Investment Fund III Ltd.
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| Settlement date: | March 2
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| Stock price: | $0.14 at close March 2
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