Series C preferreds sold with 10-year warrants for 1,625,000 shares
By Devika Patel
Knoxville, Tenn., Sept. 26 - Torvec, Inc. issued $6.23 million of series C preferred stock in a private placement on Sept. 23, according to an 8-K filed Monday with the Securities and Exchange Commission. It may sell an additional $275,000 of preferreds.
The company sold 15,562,500 preferreds at $0.40 apiece in the first tranche and may sell another 687,500 preferreds. The price per preferred is a 66.1% discount to the Sept. 23 closing share price of $1.18.
The preferreds are convertible into common shares on a 1 for 1 basis.
Investors also received 10-year warrants for 1,556,250 shares and may receive warrants for another 68,750 shares. The warrants are exercisable at 80% of the volume-weighted average price of the stock for the 10 trading days preceding the exercise date.
Proceeds will be used to continue developing and intensify the marketing of the company's IsoTorque and Rota-Torque technologies for the automotive and commercial pump industries.
Based in Pittsford, N.Y., Torvec has developed a technology for use in automotive applications.
| Issuer: | Torvec, Inc.
|
| Issue: | Series C preferred stock
|
| Amount: | $6.5 million
|
| Shares: | 16.25 million
|
| Price: | $0.40
|
| Conversion ratio: | Into 16.25 million shares
|
| Warrants: | For 1,625,000 shares
|
| Warrant expiration: | 10 years
|
| Settlement date: | Sept. 23 (for $6,225,000)
|
| Stock symbol: | OTCBB: TOVC
|
| Stock price: | $1.18 at close Sept. 23
|
| Market capitalization: | $59.87 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
