Series B convertible preferreds sold with warrants by Midtown Partners
By Devika Patel
Knoxville, Tenn., Aug. 20 – Nemus Bioscience, Inc. arranged a $5 million private placement of series B convertible preferred stock on Aug. 19, according to an 8-K filed Thursday with the Securities and Exchange Commission. Midtown Partners & Co., LLC is the agent.
The company will sell 5,000 preferreds at $1,000 apiece. Each preferred is convertible into common stock at $0.80 per share, which is a 23.81% discount to the Aug. 18 closing share price of $1.05.
The investors also will receive five-year warrants for 6.25 million shares. The warrants are each exercisable at $1.15, which is a 9.52% premium to the Aug. 18 closing share price.
Settlement is expected Aug. 21.
Proceeds will be used to advance the company’s cannabinoid-based therapeutics and for general corporate purposes.
“This financing round is an important step for Nemus. We are very excited about adding capital to Nemus to help us become the premier developer of cannabis-based pharmaceuticals that address unmet medical needs on a global basis,” chief executive officer John Hollister said in a press release.
“We are well on our way toward developing our proprietary product pipeline to offer physicians and patients the medical benefits of ‘condition-specific’ cannabinoids to alleviate symptoms associated with a range of debilitating diseases. This funding will accelerate our progress, in particular our lead drug program development for glaucoma,” added chief medical officer Brian Murphy in the release.
The biopharmaceutical company is based in Costa Mesa, Calif.
| Issuer: | Nemus Bioscience, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $5 million
|
| Preferreds: | 5,000
|
| Price: | $1,000
|
| Conversion price: | $0.80
|
| Warrants: | For 6.25 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.15
|
| Agent: | Midtown Partners & Co., LLC
|
| Pricing date: | Aug. 19
|
| Settlement date: | Aug. 21
|
| Stock symbol: | OTCBB: NMUS
|
| Stock price: | $1.05 at close on Aug. 18
|
| Market capitalization: | $19.19 million
|
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