Oxygen Biotherapeutics Strengthens Balance Sheet Through $4.6 Million Debt
Debt reduced from $4.9 million to $300,000
MORRISVILLE, N.C. -- September 18, 2013
Oxygen Biotherapeutics, Inc., (NASDAQ: OXBT) a developer of oxygen-carrying
therapeutics, today announced the Company has converted $4.6 million in
outstanding principal amount of a convertible promissory note. The note, which
was scheduled to mature on July 1, 2014, carried an interest rate of 15% per
annum. This move reduces the Company’s debt from $4.9 million to $300,000. The
Company estimates that this will improve its net shareholder equity by
approximately $3.5 million.
The $4.6 million debt was retired on August 24, 2013 in consideration for a
private placement by the Company of an aggregate of $4.6 million worth of
shares of the Company’s Series D 8% convertible preferred stock, which are
convertible into a combined total of 2,358,974 shares of common stock. The
conversion price is $1.95 per share. In connection with the purchase of shares
of preferred stock the investor will receive a warrant to purchase a number of
shares of common stock equal to 100% of the number of conversion shares at an
exercise price equal to $2.60 per share.
“This debt conversation transaction was concluded with an investment fund
managed by one of our Company’s directors. We are pleased to have the strong
support of our directors and long-term shareholders. This transaction further
improves our operating capital position by reducing interest payments and
eliminating a significant short-term liability, while also enhancing our net
equity position,” stated Michael Jebsen, Interim CEO, President and Chief
About Oxygen Biotherapeutics, Inc.
Oxygen Biotherapeutics, Inc. is developing medical products that efficiently
deliver oxygen to tissues in the body. The company has developed a proprietary
perfluorocarbon (PFC) therapeutic oxygen carrier called Oxycyte^® that is
currently in clinical and preclinical studies for intravenous delivery for
indications such as traumatic brain injury, decompression sickness and stroke.
The company is also developing PFC-based creams and gels for topical delivery
to the skin for dermatologic conditions and potentially wound care. In
addition, the Company has commercialized its Dermacyte^® line of skin care
cosmetics for the anti-aging market. Dermacyte is now out-licensed to Valor
Cosmetics of Switzerland.
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the company
that involve risks and uncertainties and reflect the company’s judgment as of
the date of this release. The forward-looking statements are subject to a
number of risks and uncertainties delays in new product introductions and
customer acceptance of these new products, and other risks and uncertainties
as described in our filings with the Securities and Exchange Commission,
including in the current Form 10-Q filed on September 17, 2013, and our annual
report on Form 10-K filed on June 26, 2013, as well as other filings with the
SEC. The company disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release. This caution is
made under the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Robert Haag, 1-866-976-IRTH (4784)
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