Pressure BioSciences (OTCQB: PBIO), a life sciences company developing its pressure cycling technology, says it has closed the third and final tranche of a convertible preferred stock and warrants financing, raising a total of $2.03 million, slightly surpassing its inital $2 million goal.
The investors in the Series J convertible preferred stock and warrants financing included all members of the company's board of directors, plus new and existing shareholders in the company, said Pressure BioSciences in a release Friday.
The private placement deal consisted of 5,087 units of Series J preferred stock and warrants to purchase the company's common stock, at a price of $400 apiece.
Each unit was made up of one share of Series J Preferred stock, convertible into 1,000 shares of common stock at a price of 40 cents per share, and a warrant to purchase 1,000 shares of common stock, according to the statement. The warrants can be used for a period of three years, at a price of 40 cents a share.
Of the proceeds raised, the company said $921,100 was in cash, with the remainder from the conversion of debt.
Separately, the company also announced Friday the closing of a $0.5 million one-year convertible debenture with an institutional investor. Under the terms, Pressure BioSciences received $250,000 at the initial closing, with the rest to be received in two separate tranches.
"During the conference call after the release of our strong 2013 first quarter financial results, we discussed the importance of developing a clear and attainable path to financial strength, and the need to start that plan as soon as possible," said president and CEO Richard Schumacher in the release.
"With the Series J and $500,000 Note closings, we believe we have successfully achieved the initial objectives of our plan."
He added that the next goal is to significantly strengthen the company's cash position before year-end. "We believe this will enable us to take full advantage of the significant breakthroughs we have recently announced in our patented pressure cycling technology (PCT) platform, as well as to continue to expand our customer base through sales of our existing and enabling PCT product line."
The company is looking to achieve this through a combination of financings, continued reduction in costs, and increases in revenue, it said.
The company, which is developing the PCT platform for multiple applications, says it believes that this breakthrough has the potential to "significantly accelerate" its growth in existing and new PCT-based applications and products, as well as in its ability to attract new strategic partnerships and its overall revenue ramp-up.
Earlier this month, Pressure BioSciences said it had a new high throughput (NYSE:HT) design for its patented pressure cycling technology (PCT) that will integrate its platform with the automated HT sample preparation and analytical system formats installed in thousands of research labs globally.
The company, which is developing the PCT platform for multiple applications, said it believes that this breakthrough has the potential to "significantly accelerate" its growth in existing and new PCT-based applications and products, as well as in its ability to attract new strategic partnerships and its overall revenue ramp-up. It reported a 21 per cent increase year-over-year in revenue with PCT products last month, and said it expects to release several new products in 2013.
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