Series C preferreds, seven-year warrants sold to Merck Global Health
By Devika Patel
Knoxville, Tenn., April 4 - VirtualScopics, Inc. arranged a $6 million private placement of series C-1 preferred stock and series C-2 preferred stock with Merck Global Health Innovation Fund, LLC on April 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 3,000 series C-1 preferreds on April 3 for $3 million and will sell 3,000 series C-2 preferreds in a future $3 million tranche. Each 4% preferred initially converts to 2,491,073 common shares at an initial conversion price of $1.2043.
Merck also will receive warrants for a total of 2,722,632 common shares, with warrants for 1,361,316 shares issued in the first tranche. The warrants are exercisable at $1.2043 for seven years.
The warrant strike price and preferred conversion price is a 22.3% discount to the April 2 closing share price of $1.55.
VirtualScopics, based in Rochester, N.Y., provides advanced medical image analysis services.
| Issuer: | VirtualScopics, Inc.
|
| Issue: | Series C-1 preferred stock and series C-2 preferred stock
|
| Amount: | $6 million
|
| Price: | $1,000.00
|
| Dividends: | 4%
|
| Conversion ratio: | Into 2,491,073 shares (per preferred)
|
| Conversion price: | $1.2043
|
| Warrants: | For 2,722,632 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $1.2043
|
| Investor: | Merck Global Health Innovation Fund, LLC
|
| Settlement date: | April 3 (for $3 million)
|
| Stock symbol: | Nasdaq: VSCP
|
| Stock price: | $1.55 at close April 2
|
| Market capitalization: | $44.05 million
|
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