The company intends to use the net proceeds for working capital and general corporate purposes. The first closing occurred on June 30, 2008, and subsequent closings are subject to conditions in the agreement.
Under the terms of the agreement, Biopure is selling to accredited investors up to 6.81 million shares of its common stock and warrants to acquire up to an additional 6.81 million shares. The price for one share and one warrant is $0.3377, and the exercise price of each warrant is $0.45.
The warrants have a term of five years, become exercisable six months after the closing date, and are callable by Biopure after the initial exercise date provided that the weighted average price of Biopure’s common stock for 10 consecutive days is over $0.675.