By Devika Patel
Knoxville, Tenn., July 28 - ReGen Biologics, Inc. said it completed a $2.5 million private placement of 8% unsecured convertible notes.
The notes will mature on July 24, 2009 and are convertible into series F convertible preferred stock at $15.00 per preferred or into common stock at $0.15 per share if the series F preferreds have already converted.
Investors also received five-year warrants for 25% of the shares into which the notes are convertible, exercisable at $1.00 per preferred or $0.01 per common share if the preferreds have been converted.
Each series F preferred into which the notes are convertible will automatically convert into 100 common shares if certain conditions are met. At that time, each warrant will convert into the right to acquire 100 common shares.
Proceeds will be used to fund operations into the fourth quarter.
ReGen, based in Franklin Lakes, N.J., develops orthopedic products.
| Issuer: | ReGen Biologics, Inc.
|
| Issue: | Unsecured convertible notes, convertible into series F convertible preferred stock, common stock
|
| Amount: | $2.5 million
|
| Maturity: | July 24, 2009
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $15.00 (per preferred), $0.15 (per common share)
|
| Warrants: | For 25% of the shares into which the notes are convertible
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00 (per preferred), $0.01 (per common share)
|
| Settlement date: | July 28
|
| Stock symbol: | OTCBB: RGBI
|
| Stock price: | $0.08 at close July 25
|
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