DURHAM, N.C., July 20 /PRNewswire-FirstCall/ -- Oxygen Biotherapeutics, Inc. (OTC Bulletin Board: OXBO) today announced that the company has closed its proposed acquisition of outstanding common stock purchase warrants.
The company acquired and cancelled 52.2 million common stock purchase warrants with an exercise price of $0.247 per share and an additional 18.7 million warrants with an exercise price of $0.245 per share, or a total of 70.9 million warrants. Prior to the transaction there were 121 million warrants outstanding, so the transaction reduces that number to 49.1 million common stock purchase warrants now outstanding. In exchange for the cancelled warrants the company issued to the holders 35.5 million shares of restricted common stock and paid to them $2.8 million in cash.
"The closing of the new financing by the Vatea Fund and the exchange of the warrants marks an enormous leap towards positioning our company for attracting and obtaining future financings that are necessary to support our product development," said Chris Stern, Oxygen Biotherapeutics, Inc. chairman and CEO. "We are glad to have a financing arrangement in place with Vatea Fund that provides the means, after achieving specific milestones, to finance our future growth and development plans. We have significantly improved our working capital position which will enable us to advance the product development programs we have in place and consider a move to a major stock exchange."
The securities purchase agreement with Vatea Fund, assuming all milestones are achieved in a timely manner, provides for Vatea Fund to purchase an additional 60 million shares of the company's stock for a total purchase of 80 million shares for $20 million in cash.
For additional comments by Chris Stern on the investment by Vatea Fund, please see his latest blog and the video posted on the company website at www.oxybiomed.com.
About Oxygen Biotherapeutics, Inc.
Oxygen Biotherapeutics, Inc. is dedicated to commercializing innovative pharmaceuticals and medical devices in the field of oxygen therapeutics and Defense Medicine(TM). The company has under development a perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product (Oxycyte(R)) and has out-licensed an implantable glucose sensor. These products are based upon core technologies that include biomedical applications for PFCs as well as medical and industrial applications for biosensors. Each of the product candidates is designed with advantages over currently marketed products in major markets including traumatic brain injury, sickle cell crisis pain, trauma, wound care, decompression sickness, acute respiratory distress syndrome, stroke, myocardial infarction, surgery, diabetes and cosmetic applications. More information is available at www.oxybiomed.com.
Caution Regarding Forward-Looking Statements
This news release and the video referenced in this news release, which is posted on the company website, contain forward-looking statements by Oxygen Biotherapeutics, Inc. that involve risks and uncertainties and reflect the company's judgment as of the date of this release. These statements include those referring to use of the money received from Vatea Fund and steps to move the company stock listing to a major exchange. Actual events or results may differ from Oxygen Biotherapeutics' expectations. There can be no assurance that the funds received will be sufficient for the company's growth and development plans or that the company will be successful in moving the stock listing to a major exchange. Additional information concerning these and other risk factors affecting Oxygen Biotherapeutics' business can be found in the company's public report filings with the Securities and Exchange Commission, which are available on the SEC website at www.sec.gov and through our website at www.oxybiomed.com. Oxygen Biotherapeutics 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.
|SOURCE Oxygen Biotherapeutics, Inc.|
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