Investors in the first closing of the private placement purchased 1,987,936 shares of the company’s common stock at a price of $1.25 per share and received a five-year warrant to purchase an additional 1,192,761 shares of the company’s common stock at an exercise price of $1.40 per share. The investors paid $2.059 million in cash and agreed to extinguish $426,000 in existing debt owed to them by Patient Safety Technologies (PST).
Pursuant to the terms of the private placement, the company may sell up to an aggregate of $4 million worth of common stock and warrants by no later than June 19, 2008. PST has agreed to register for resale the shares of common stock sold in the offering.
Bill Adams, CEO of PST and SurgiCount, said: “This round of financing allows us to hire additional staff to meet the increased interest that we are enjoying in our product, primarily as a result of recent environmental changes as well as an overall increased awareness of SurgiCount and its Safety-Sponge system.”