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PBIO Continues To Move In A Positive Direction

Another Favorable Financing For PBIO

The Deal

On July 3, 2012, Pressure BioSciences, Inc. (PBIO) announced that it has reached agreement with seventeen investors on an initial tranche of approximately $600,000 of a $1.2 million private placement. The transaction consists of the sale of approximately 120,000 units of a newly designated series of preferred stock and warrants to purchase Common Stock. The investors in the initial tranche include all members of the Company's new Board of Directors, all officers of the Company, all members of the prior Board of Directors, and several existing accredited investors in PBIO.

Pursuant to the agreement, the price per unit is $5.00. Each unit consists of one share of Series G Preferred Stock (convertible into ten shares of Common Stock at a Common Stock equivalent price of $0.50 per share) and a Warrant to purchase five shares of restricted Common Stock. The Warrants are exercisable for a period of three years, at an exercise price of $0.50 per share. Of the approximate $600,000 initial tranche, $485,000 was received in cash and $115,000 will be from the conversion of debt.

In addition to the initial tranche of $600,000, PBIO plans to close one or more additional tranches in the private placement on or before August 31, 2012.

The Implications for PBIO

This deal not only immediately boosts PBIO's balance sheet, it is also another favorable financing for PBIO in just three months. In early April, PBIO brought in $500,000 from Ironridge BioPharma Co. at above market pricing. The conversion price of $1.02 for the Ironridge notes was a premium of 64.5% over the then share price of $0.62 with no warrants and no restrictive provisions. This time, the conversion price of $0.50 is a premium of 72% over the current share price of $0.29.

This is unusual since most financing for small cap biotech companies are at deep discount. The two above market financing deals for PBIO further validate the Company's technology and its commercial potential.

Another interesting and important factor to consider is that all insiders including board members, both old and new, as well as all officers of the PBIO, are participating in the placement. This means that management and directors are confident that the Company is doing or will be doing well.

PBIO Could Turn Around in 2H2012

PBIO recently launched aggressive commercialization initiatives for its Pressure Cycling Technology (PCT)-based products. Within one year, management has established multiple co-marketing or distribution agreements worldwide.

Funds raised in the offering will be used primarily to support the Company's PCT product line commercialization program. According to our model, revenue could begin to grow in 2Q12, and will accelerate in 2H12.

We are pleased to see that things at PBIO continue to move in a positive direction.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.