On November 23, 2022, Eterna Therapeutics Inc., a Delaware corporation (the "Company"), reported that entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain investors (the "Purchasers") providing for the private placement (the "Private Placement") to the Purchasers of an aggregate of 2,184,950 units (collectively, the "Units"), each Unit consisting of (i) one share of the Company’s common stock, par value $0.005 per share ("Common Stock") and (ii) two warrants, each exercisable to purchase one share of Common Stock at an exercise price of $3.28 per share (the "Warrants"), for an aggregate purchase price of approximately $7.7 million, consisting of $3.53 per Unit (inclusive of $0.125 per Warrant) (Filing, 8-K, Brooklyn ImmunoTherapeutics, NOV 23, 2022, View Source [SID1234624421]). Pursuant to the Purchase Agreement, the parties thereto have agreed that the offering of the Units will close on December 2, 2022, subject to satisfaction of customary closing conditions (the "Closing").

Upon issuance at Closing, each Warrant will become exercisable six months following the date of Closing, will expire five-and-one-half years following such date, and will be subject to customary adjustments. The Warrants purchased by certain of the Purchasers may contain a provision pursuant to which such Warrants may not be exercised if the aggregate number of shares of Common Stock beneficially owned by the holder thereof would exceed 4.99% immediately after exercise thereof, subject to increase to 9.99% at the option of the holder.

Mr. Charles Cherington, Chairman of the Company’s Board of Directors, and Mr. Nicholas Singer, a director of the Company, participated in the Private Placement on the same terms and subject to the same conditions as all other Purchasers.

The Company intends to use the net proceeds from the Private Placement for general working capital purposes.

The securities to be issued to the Purchasers under the Purchase Agreement were offered in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and Rule 506 of Regulation D promulgated thereunder. The Company relied on this exemption from registration based in part on representations made by the Purchasers, including that each Purchaser is an "accredited investor", as defined in Rule 501(a) promulgated under the Securities Act.

The offer and sale of the securities pursuant to the Purchase Agreement have not been registered under the Securities Act or any state securities laws. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Neither this Current Report on Form 8-K, nor the exhibits attached hereto, is an offer to sell or the solicitation of an offer to buy the securities described herein or therein.

Pursuant to the Purchase Agreement, the Company and the Purchasers have also agreed to enter into a Registration Rights Agreement at the Closing, pursuant to which the Company will agree to prepare and file a registration statement on Form S-3 with the Securities and Exchange Commission no later than 30 days following the date on which the Company becomes eligible to use Form S-3 to register the resale of the shares of Common Stock included in the Units and the shares of Common Stock issuable upon exercise of the Warrants.

The foregoing description of the Purchase Agreement is only a summary and is qualified in its entirety by reference to the full text of such agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

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