The debenture bears an interest rate of 8% and is convertible into common shares at $0.20 per share, as long as the company meets certain milestones. YA cannot exercise the conversion below .20 for 24 months as long as IR Biosciences meets certain milestones as stipulated in the agreement.
IR BioSciences will immediately draw down $2 million of the $3 million commitment. The balance of $1 million will be available for funding at IR BioSciences’s discretion once certain milestones are met. The company is confident that the new funding will not impact its current cash burn rate.
IR BioSciences intends to use the funds for the further development and testing of its drug candidate Homspera with potential therapeutic applications against infectious disease and cancer, for stimulating stem cell activity, and promoting wound healing.