Medtech firm Pressure BioSciences (OTCQB:PBIO) has received an additional $1.1mln from its private placement initiative.
The funds raised via the proposed $5mln share placing have now risen to $3.28mln. One or two more additional tranches are expected to complete in the near future, the company told investors.
As per the subscription agreement, Pressure BioSciences will issue senior secured convertible debentures at a fixed conversion price of $0.28 per restricted common share, and common stock purchase warrants exercisable at US$0.40 per share.
"The priorities for the use of funds from the offering remain: (I) to expand the company's marketing and sales capabilities, including a sizeable increase in the number of the Company's marketing and sales personnel; (ii) to increase the company's manufacturing and operational capabilities; (III) to ready the company for a potential uplisting to a regulated exchange in the near future; and (iv) to retire all variable rate convertible debt ("VRCD") we took on to help facilitate growth prior to additional equity capital being raised," stressed Richard Schumacher, president and chief executive officer of Pressure BioSciences.
"With the funds received to date, we have eliminated approximately 70% of all the VRCD we had as of the close of the 2015 second quarter. It is expected that cash received from additional closings that may occur in the near future will be used to eliminate all remaining VRCD debt," he added.
PBIO is developing pressure cycling technology-based instruments and consumables for a number of areas in scientific research, including drug discovery and design, cancer and other disease/disorder detection, and the analysis of microorganism populations in soil.