STONY BROOK, N.Y. — September 4, 2018 — Applied DNA Sciences Inc., a large-scale PCR-based DNA manufacturing company, today announced the closing in the amount of $1.65 million of secured convertible notes by way of a non-brokered private placement with accredited investors and certain members of its management team and Board of Directors, led by its chairman, president and CEO. The company expects to use the proceeds for general corporate purposes.
“This investment enhances our balance sheet and supports our pursuit of pre-commercial revenue opportunities in the synthetic textile, pharmaceutical and legal cannabis markets that we believe will further diversify our revenue streams beyond our core cotton market,” said Dr. James A. Hayward, chairman, president and chief executive officer of Applied DNA. “Having demonstrated success in penetrating large and developing markets with substantial issues with supply chain security, such as the U.S. cotton supply chain, our growing penetration of non-commodity markets offer a path to revenue growth. I want to thank the participating members of the management team, Board of Directors and outside investors for their very strong vote of confidence in the company’s vision, growth strategy and market opportunity.”
The notes were issued on August 31, 2018, mature on August 30, 2021, and, carry a coupon of 6.00 percent, payable semi-annually either in cash, or in kind. Each note, including interest, is convertible at the option of the holder at any time prior to maturity into shares of Common Stock at a conversion price of $2.50 per share. The company has the right to require the holders of the Notes to convert the Notes, including interest, into shares of Common Stock at a conversion price of $2.50 per share in the event that the company’s closing share price exceeds $3.50 for 20 consecutive trading days. The Notes will be secured by substantially all assets of the company.
Posted September 4, 2018
Source: Applied DNA Sciences