CryoPort, Inc. (OTCBB: CYRX) today announced that it closed the initial round of the private placement announced on August 10, 2010 with various institutional and accredited investors for an aggregate of approximately 4.5 million shares of common stock and warrants to purchase approximately 4.9 million shares of its common stock at an exercise price of $0.77 per share pursuant to Securities Purchase Agreements. The Company today received net proceeds of approximately $2.8 million with the balance of $0.2 million to be received next week. The Company is obligated to file a registration statement with the Securities and Exchange Commission registering the resale of these shares to be issued to the investors and the shares underlying the warrants within sixty (60) days following the close of the transaction.
The exercise price of the warrants was lowered from $1.62 as originally announced in exchange for removing repricing provisions from the common stock and warrants in order to avoid potentially violating prior agreements with debt holders and triggering a debt default.
CryoPort is leaving the offering open for a potential second round of funding at identical terms to the initial round.
The Company intends to use the proceeds of the private placement for working capital purposes.
Maxim Group LLC, who ran the offering, and Emergent Financial Group, Inc. served as the Company's placement agents for the transaction.
This press release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
The Company intends to file a Current Report on Form 8-K with the Securities and Exchange Commission, which will include a more detailed description of the transaction.
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