By Devika Patel
Knoxville, Tenn., Oct. 2 - Aeolus Pharmaceuticals, Inc. said it raised an additional $125,000 from a private placement of 30-month 7% senior convertible notes.
The company took in $500,000 in the first tranche on Aug. 1 and $125,000 in the second tranche on Sept. 5.
Investors agreed to invest another $250,000 over the next two months if the company satisfies certain conditions, and have the option to invest an additional $4 million at any time on or before Feb. 1, 2010.
The investors also received warrants for up to 2,000 common shares for every $1,000 principal amount of notes, for a total of 250,000 shares. The warrants are exercisable at $0.50 per share for five years.
The notes are convertible into common stock at $0.35 per share.
Proceeds will be used to advance the development of AEOL 10150 and for general administrative expenses and working capital.
Aeolus is a Laguna Niguel, Calif.-based pharmaceutical company.
| Issuer: | Aeolus Pharmaceuticals, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $1 million (minimum), $5 million (maximum)
|
| Maturity: | 30 months
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $0.35
|
| Warrants: | For 250,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Aug. 1 ($500,000), Sept. 5 ($125,000), Oct. 2 ($125,000)
|
| Stock symbol: | OTCBB: AOLS
|
| Stock price: | $0.34 at close Aug. 1
|
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