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Pressure BioSciences announces $843,000 registered direct offering

Pressure BioSciences (NASDAQ:PBIO) announced late Wednesday that it has signed an agreement for a registered direct offering with certain investors, from which proceeds of around $843,000 will be used to boost commercialization efforts.

The offering is for 843 units priced at $1,000 per unit. Each unit consists of one share of the company's Series D convertible preferred stock, which can be exchanged for roughly 1,539 shares of common stock.

Every unit also includes a Series F warrant to purchase roughly 614 shares of common stock, with each warrant exercisable for five years at a price of 81 cents per share.

Pressure BioSciences is a company operating in the life sciences market, whose pressure cycling technology (PCT) used to extract cell components has a myriad of potential target industries.

Since the company began commercial operations in the middle of 2007, it has come a long way, releasing a number of PCT-based products geared towards the $6 billion sample preparation market and covered by 24 US and foreign patents, including three pressure-generating instruments named Barocyclers, a patent-pending sample homogenization device (The Shredder SG3), five types of single-use processing containers and six different, application-specific reagent kits.

Pressure BioSciences' key product, the Barocycler, is an instrument that uses rapid and repeating cycles of hydrostatic pressure at controlled temperatures, in order to extract cell components in preparing a biological sample, such as DNA, RNA, proteins, and lipids from humans, animals, and plants, for further study.

The PBI sample preparation system has been proven to be safer, more accurate, reproducible, and much faster than current cell extraction methods - with up to 48 samples able to be processed from a wide variety of cells and tissues within minutes. The closed system, which reduces sample handling and therefore minimizes exposure to toxins for scientists, also works with computer-controlled protocols that ensure consistent sample extraction every time, said Pressure BioSciences.

President and CEO, Richard T. Schumacher, commented: “We have approximately 200 revenue-generating PCT Systems installed, 24 issued patents, over 100 publications citing the advantages of PCT, and a number of consumable products that complement our three Barocycler instruments.
We have achieved these early successes with a relatively small sales and marketing team.

"Based on our successes to date, we believe it is now time to begin to aggressively commercialize this very powerful and enabling technology platform. To that end, we have developed a very comprehensive commercialization strategy, one that includes expansion of our internal sales and marketing team, our non-US distribution network, and our strategic partnerships."

Indeed, the company plans to use some of the proceeds from the offering, which is expected to close Friday, to initiate and support parts of this commercialization effort. 

Already, Pressure Biosciences has installed around 200 of its PCT Barocycler instruments plus required consumables in laboratories, with clients including the FDA, the FBI, Harvard, UCLA, ThermoFisher Scientific, Merck, and Novartis, among a host of others. The applications are several - from the key $2 billion target market of mass spectrometry, an analytical technique used to determine the characteristics of molecules, to biomarker discovery, forensics and counter-bioterrorism, among other uses.