Pure Bioscience, creators of the patented silver dihydrogen citrate (SDC) antimicrobial, has entered into definitive documents contemplating the sale of up to a total of $3 million of its common stock and warrants to institutional investors in a registered direct offering.
Under the terms of purchase agreements, Pure will sell up to 1,418,440 newly issued shares of its common stock and warrants to purchase up to 496,454 shares of its common stock. The shares of common stock will be sold at a per share price of $2.115 per share and investors will receive warrants to purchase 0.35 shares of common stock at an exercise price of $2.37 per share for each share of common stock they purchase in the offering. The purchase price per share represented an approximate 11 per cent discount to Pure's average closing bid price of the trailing five days ending May 21, 2009. The warrants are immediately exercisable and will expire five years from the date of issuance. After fees and expenses, the net proceeds to PURE are expected to be approximately $2.79 million. The net proceeds from the offering will be used for working capital.
In addition, Pure has agreed to issue to Axiom Capital Management, Inc a five-year warrant to purchase the number of shares of common stock equal to 5 per cent of the aggregate shares of common stock sold to the investors in the offering at an exercise price of $2.64 per share in consideration of its services to Pure as the placement agent in the offering.
The common stock and warrants described above are being offered by Pure only by means of a prospectus.
Pure Bioscience develops and markets technology-based bioscience products that provide solutions to numerous global health challenges, including Staph (MRSA) and are included on the list published by the US Environmental Protection Agency (EPA) of antimicrobial products effective against the 2009 H1N1 flu strain based on their effectiveness against other influenza A virus strains.