Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Genesis Pharmaceuticals Enterprises has successfully completed a private placement of an aggregate principal amount of $30 million of its three year convertible notes.
Subscribe to our email newsletter
The notes carry an annual interest rate of 6% and are convertible into shares of the company’s common stock at a conversion price of $0.20 per share. In connection with the private placement of the notes, the company issued to purchasers of the notes an aggregate of 75 million five-year warrants to purchase shares of its common stock at an exercise price of $0.25 per share. The lead investor in the private placement was Pope Investments.
Genesis intends to use a significant portion of the net proceeds from this private placement to pay for the rights to manufacture and distribute a new Chinese Class I drug, Ligustrazine Ferulic Acid Acetate (LFAA), and for the marketing expenses associated with the launch of LFAA.
The company also intends to use a significant portion of the net proceeds from the private placement to purchase manufacturing equipment and upgrade the company’s facilities.