On August 22, 2019, Applied DNA Sciences, Inc. (the "Company"), reported that it has entered into subscription agreements (the "Subscription Agreement") for a private placement (the "Private Placement") of its Common Stock, par value $.001 per share (the "Common Stock"), with a group of accredited investors, including the Company’s chief executive officer, president and chairman of the board of directors and the chief information officer (the "Investors") (Filing, 8-K, Applied DNA Sciences, AUG 26, 2019, View Source [SID1234539005]). The Private Placement closed with respect to each investor on August 22, 2019. As a result of the Private Placement, the Company expects to issue and sell 1,548,151 shares of Common Stock at a price of $0.27 per share (the "Purchase Price") for total expected gross proceeds of $418,000. The Purchase Price represents the greater of (i) the lower of (x) the closing price per share of Common Stock (as reflected on Nasdaq.com) on August 21, 2019 or (y) the average closing price per share of Common Stock (as reflected on Nasdaq.com) for the five trading days immediately preceding August 22, 2019 and (ii) the consolidated closing bid price per share of Common Stock on August 21, 2019.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
The issuance of the Common Stock will be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act") pursuant to Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder and such Common Stock will therefore be restricted. Each investor gave representations that he, she or it was an "accredited investor" (as defined under Rule 501 of Regulation D) and that he, she or it is purchasing such securities without a present view toward a distribution of the securities. In addition, there was no general solicitation conducted in connection with the offer and sale of the securities.
The foregoing description of the Subscription Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the form of Subscription Agreement, which is attached hereto as Exhibit 10.1, and incorporated herein by reference in its entirety.