Company sells units of shares, five-year warrants at $0.16 per unit
By Devika Patel
Knoxville, Tenn., May 10 - Scio Diamond Technology Corp. completed a $550,000 first tranche of a $2.2 million private placement of units on May 4, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company plans to sell 2.75 million units of one common share and one warrant at $0.80 per unit. It sold 687,500 units in the initial tranche.
Each warrant is exercisable at $1.60 for three years. The strike price is a 46.67% discount to $3.00, the May 3 closing share price.
Proceeds will be used for general corporate purposes.
The company is based in Greenville, S.C., and focuses on man-made diamond technology development and commercialization.
Issuer: | Scio Diamond Technology Corp.
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Issue: | Units of one common share and one warrant
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Amount: | $2.2 million
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Units: | 2.75 million
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Price: | $0.80
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Warrants: | One warrant per unit
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Warrant expiration: | Three years
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Warrant strike price: | $1.60
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Settlement date: | May 4 (for $550,000)
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Stock symbol: | OTCBB: SCIO
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Stock price: | $3.00 at close May 3
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Market capitalization: | $81.35 million
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