The debentures are convertible into company common stock at $1.10 per share. After six months, the debentures will amortize through thirty equal installments. The company may at its option redeem the debentures for an amount equal to 110% of the then outstanding principal.
The debentures were issued at an 8% original issue discount and bear interest at an annual rate of 8% payable monthly commencing one year from closing. The offering includes the issuance of warrants, giving holders the right to purchase approximately 2.8 million shares of company common stock, exercisable at $1.21 per share with a six-year term.
Accentia intends to use the proceeds to support development, regulatory and partnering strategies for SinuNase and Revimmune and support general operations.