Pressure BioSciences (PBIO) (OTCQB:PBIO) said Monday that Ironridge BioPharma would buy $500,000 in shares of Series E convertible preferred stock of the company.
Each share of the 500 shares of preferred stock to be
sold to Ironridge is convertible into roughly 980 shares of common
stock, which is determined by dividing the stated value of the Series E
preferred stock of $1,000 by a fixed conversion price of $1.02 per
The conversion price is not subject to any price
anti-dilution protection, and Ironridge will receive no warrants. There
are also few restrictive covenants and no amortization provisions in the
transaction, the company said.
The company's patented Pressure
Cycling Technology (PCT) platform uses rapid and repeating cycles of
hydrostatic pressure at controlled temperatures to extract cell
components in the preparation of a biological sample, such as DNA, RNA,
and proteins from humans, animals and plants, for further study.
applications of the company's PCT-based products are endless - from the
key $2 billion target market of mass spectrometry, an analytical
technique used to determine the characteristics of molecules, to
biomarker discovery, forensics and counter-bioterrorism, among other
The preferred stock sold will accrue dividends at 10.5
percent per year, subject to a credit risk and make-whole adjustment,
and is payable in cash or shares of registered common stock at the
discretion of Pressure BioSciences.
certain conditions and subject to certain limitations, the company said
it may require Ironridge to convert their preferred stock into common
stock. Ironridge said it has never shorted the company's stock, and does
not hold any short position in the company.
“We are very impressed with PBI’s patented and enabling Pressure Cycling Technology (PCT)
their existing customer base, their accomplishments over the past year,
and their hard-working and talented staff,” said Ironridge managing
director, Brendan O’Neil.
“We are excited about this financing
transaction, and hope this is the beginning of a long and mutually
The transaction is subject to customary closing conditions, the parties said, but is expected to close later this week.
Richard T. Schumacher, president and CEO of Pressure BioSciences,
added: “We appreciate Ironridge’s life science focus, and believe they
are a great capital partner for us as we seek to fill a large and
growing need in the sample preparation marketplace in the life sciences
Since Pressure BioSciences
began commercial operations in the middle of 2007, it has come a long
way, releasing a number of PCT-based products geared towards the $6
billion sample preparation market, including three pressure-generating
instruments named Barocyclers, a patent-pending sample homogenization
device (The Shredder SG3), five types of single-use processing
containers and six different, application-specific reagent kits.
the company has installed around 200 of its PCT Barocycler instruments
plus required consumables in laboratories. The sample preparation system
has been proven to be safer, more accurate, reproducible, and much
faster than current cell extraction methods - with up to 48 samples able
to be processed from a wide variety of cells and tissues within
Indeed, Pressure BioSciences has been accelerating its commercialization efforts as of late.
March, the life sciences company inked another distribution deal with
Netherlands-based life sciences company LA Biosystems BV, and a month
earlier it announced the signing of a co-marketing and selling agreement
with Digilab. Late last year, the company inked a partnership with IUL
to distribute its PCT product line in Germany and Switzerland.
also announced in March that the Henry C. Lee (HCL) Institute of
Forensic Sciences will evaluate the use of the company's PCT platform
for the extraction of DNA and other biomolecules in a number of forensic