Intelligent Bio Solutions has entered into a securities purchase agreement with a single existing institutional investor for a private placement providing approximately $5 million in initial gross proceeds and potential total proceeds of up to $15 million.
The transaction is priced at-the-market under Nasdaq rules.
The initial financing involves 2,036,659 shares of common stock, or Series M pre-funded warrants in lieu of shares, together with Series N-1 and Series N-2 warrants covering up to 2,036,659 shares each.
The combined purchase price is $2.455 per share and associated warrants, generating approximately $5 million before placement agent fees and other expenses.
The Series N-1 and N-2 warrants have an exercise price of $2.33 per share.
The Series N-1 warrants are immediately exercisable, while the Series N-2 warrants require stockholder approval before they can be exercised.
Subject to certain conditions, Intelligent Bio Solutions can call the Series N-1 warrants after publicly announcing that it has received FDA 510(k) clearance for the commercial marketing and sale of its Intelligent Fingerprinting Drug Screening System.
The company intends to use the net proceeds for working capital and general corporate purposes.
Intelligent Bio Solutions’ fingerprint-based drug screening technology collects samples in seconds and can provide results in under 10 minutes. Its system screens for recent use of substances including opiates, cocaine, methamphetamine and cannabis.
Support: Ladenburg Thalmann is serving as exclusive placement agent.
