LAS VEGAS– PharmaCyte Biotech, Inc. (Nasdaq: PMCB) announced it has entered into a securities purchase agreement for a $7 million financing with its existing investors. The private placement involves the sale of 7,000 shares of newly designated Series C convertible preferred stock, valued at $1,000 per share, which can be converted into 7 million shares of common stock. The financing also includes warrants to purchase up to 7 million shares of common stock. Closing is expected on or about Aug. 19, subject to customary conditions.
GP Nurmenkari Inc. is serving as the sole placement agent.
“This financing, priced at a premium to our current market price and led by our existing investors, reflects strong confidence in PharmaCyte’s future,” said Josh Silverman, interim CEO of PharmaCyte. “It meaningfully strengthens our balance sheet, positions us to enhance shareholder value, and enables us to continue pursuing strategic alternatives that we believe can maximize long-term returns for our stockholders.”
The preferred stock carries a conversion price of $1.00 per common share and a 7 percent quarterly dividend payable in cash. The warrants, also priced at $1.00 per share, are exercisable immediately and remain valid for five years.
PharmaCyte noted that the securities were sold in a private placement exempt from registration under the Securities Act of 1933. The company has agreed to file a registration statement with the Securities and Exchange Commission to register the resale of common shares issuable upon conversion of the preferred stock and exercise of the warrants.
