Additional Relevant Details
The Company agreed to sell an aggregate of 441,000 shares of common stock at a price of $2.25 per share and 2,776.5 shares of Series A Convertible Preferred Stock, at a price of $1,000 per share. The Series A Convertible Preferred Stock is convertible at any time into an aggregate of approximately 1.23 million shares of common stock at an initial conversion price of $2.25 per share, subject to certain ownership limitations. The Series A Convertible Preferred Stock is only entitled to dividends in the event dividends are paid on the Company’s common stock and will not have any preferences over the Company’s common stock, with the exception of a $0.01 per share liquidation preference. Additionally, the investor will receive, for each share of common stock or for each share of common stock issuable upon conversion of a share of Series A Preferred Stock purchased in the registered direct offering, a warrant to purchase one-half of a share of common stock at an exercise price of $3.50 per share. The warrant issued to the investor shall be initially exercisable six months following issuance and terminate five years following the initial exercise date. The closing of the offering is expected to take place on or about June 30, 2016, subject to the satisfaction of customary closing conditions.