Oxygen Biotherapeutics Prices Offering With Gross Proceeds Of $5.4 Mln

(RTTNews) - Oxygen Biotherapeutics Inc. (OXBT) announced the pricing of a public offering and the entry into definitive agreements with investors for the sale of securities with gross proceeds to the Company of approximately $5.4 million.

As per the terms of the agreements, Oxygen said it will issue registered shares of Series C 8% convertible preferred stock with an aggregate stated value of approximately $5.4 million, which are convertible into common stock of the Company at $1.95 per share. The transaction also provides for the issuance by the Company of registered warrants, exercisable for six years, to purchase up to an aggregate of approximately 2.8 million shares of common stock of the Company with an initial exercise price of $2.60.

Oxygen stated that it plans to use the proceeds from the transaction to further its clinical trials and efforts to obtain regulatory approval of Oxycyte, develop its product candidates, including dermatologic indications using its topical gel, support manufacturing of Oxycyte, for research and development and for general corporate purposes, including working capital and potential acquisitions. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (LTS), is serving as the exclusive placement agent on the transaction.

The offering is expected to close on or about Tuesday, July 23, 2013, subject to the satisfaction of customary closing conditions.

The Series C Stock accrues dividends at 8% per annum until the third anniversary of the issuance date, payable quarterly in cash, or provided certain conditions are met, in common stock at 90% of a calculated market price. If Series C Stock is converted into common stock prior to the three-year anniversary of issuance, the holder is entitled to a three-year dividend make-whole payment at the time of conversion.