On Thursday, Alzamend Neuro Inc ALZN entered right into a Securities Buy Settlement with an institutional investor for the acquisition and sale of fifty shares of its Sequence A Convertible Most popular Inventory, the acknowledged worth of $10,000 per share in a registered direct providing, for $500,000.
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Moreover, the Investor agreed to buy as much as an extra 2,450 Most popular Shares, of which 50 shares shall be bought on the preliminary closing and the remaining Most popular Shares over a while, as outlined within the Settlement, for an mixture buy of as much as $25 million of Most popular Shares.
Every Most popular Share shall be convertible at a conversion value equal to the better of (i) $0.25 per share (the “Flooring Worth“) which Flooring Worth shall, aside from voting rights functions, be adjusted for inventory dividends, inventory splits, inventory combos and different comparable transactions, and (ii) the lesser of (A) $1.50 and (B) 80% of the bottom closing value of the Widespread Inventory through the three buying and selling days instantly earlier than the date of conversion.
The Most popular Shares shall pay a dividend at an annual fee of 15%.
Additional, the Investor will obtain unregistered warrants to buy as much as 20 million shares, presuming that the full quantity of the Most popular Shares is offered, be instantly exercisable for 5 years at $1.25 per share.
The proceeds from the Financing will be used to provoke extra scientific trials by Alzamend for its two product candidates and common working capital functions.
Tuesday, Alzamend Neuro terminated its “at-the-market” fairness providing program to restrict uncertainty and unfavorable dilution for its stockholders.
Worth Motion: ALZN shares closed at $0.53 on Wednesday.
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