Company sells 5% two-year notes, five-year warrants for 400,000 shares
By Devika Patel
Knoxville, Tenn., Oct. 24 - RegeneRx Biopharmaceuticals, Inc. settled a $300,000 private placement of 5% unsecured convertible notes on Oct. 19, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The note matures in two years and is convertible at any time into common shares at $0.15 per share.
The investor also received warrants for 400,000 shares. The warrant is exercisable at $0.15 for five years.
The conversion price of the notes and warrant strike price are a 15.39% premium to the Oct. 18 closing share price of $0.13.
Sinaf SA invested $200,000 and received 266,667 warrants; Joseph C. McNay invested $50,000 and received 66,667 warrants; Allan L. Goldstein invested $35,000 and received 46,666 warrants and J.J. Finkelstein invested $15,000 and received 20,000 warrants.
Proceeds will be used to pay liabilities and for working capital, operating expenses and general corporate purposes. Based on current estimates, the company expects that its existing financial resources, including the proceeds from this offering, will be adequate to continue operating into the first quarter of 2013. RegeneRx said in the filing that it will need to raise additional capital prior to the note's maturity to repay the convertibles and continue operating its business.
The biopharmaceuticals developer is based in Rockville, Md.
| Issuer: | RegeneRx Biopharmaceuticals, Inc.
|
| Issue: | Unsecured convertible note
|
| Amount: | $300,000
|
| Maturity: | Two years
|
| Coupon: | 5%
|
| Conversion price: | $0.15
|
| Warrants: | For 400,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.15
|
| Investors: | Sinaf SA (for $200,000); Joseph C. McNay (for $50,000); Allan L. Goldstein (for $35,000) and J.J. Finkelstein (for $15,000)
|
| Settlement date: | Oct. 19
|
| Stock symbol: | OTCBB: RGRX
|
| Stock price: | $0.13 at close Oct. 18
|
| Market capitalization: | $10.54 million
|
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