Generex Biotech (GNBT) Announces Funding Commitment from Seaside 88; Expected to Purchase Up to 49.46M Common
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Generex Biotechnology Corporation (NASDAQ: GNBT) today announced that it has entered into a common stock purchase agreement with Seaside 88, LP, a private investment limited partnership. Seaside has committed to purchase up to 49,455,130 shares of Generex common stock. Seaside will purchase up to 2,000,000 shares every two weeks in up to 25 tranches (with up to 1,455,130 shares purchased in the final tranche). Today, Generex and Seaside closed the first tranche of 2,000,000 shares for gross proceeds to Generex of $945,180 at a per share price of $0.47259, being 89% of the 10-day volume weighted average trading price (VWAP) of the Company's common stock on the NASDAQ Capital Market immediately prior to the closing.
At each subsequent closing, the price of the common stock to be sold will be an amount equal to the lower of (a) the VWAP for the ten consecutive trading days immediately prior to the closing date multiplied by 0.89, and (b) the VWAP for the trading day immediately prior to the closing date multiplied by 0.95.
Generex is offering these securities pursuant to an effective shelf registration statement and only by prospectus. Copies of the final prospectus supplement in respect of the offering and the accompanying base prospectus are available online at the U.S. Securities and Exchange Commission website, www.sec.gov. This press release does not constitute an offer to sell or solicitation of an offer to buy, nor will there be any sales of securities in any jurisdictions where any such offer, solicitation, or sale would be unlawful.
Midtown Partners & Co., LLC acted as placement agent for the transaction.
At each subsequent closing, the price of the common stock to be sold will be an amount equal to the lower of (a) the VWAP for the ten consecutive trading days immediately prior to the closing date multiplied by 0.89, and (b) the VWAP for the trading day immediately prior to the closing date multiplied by 0.95.
Generex is offering these securities pursuant to an effective shelf registration statement and only by prospectus. Copies of the final prospectus supplement in respect of the offering and the accompanying base prospectus are available online at the U.S. Securities and Exchange Commission website, www.sec.gov. This press release does not constitute an offer to sell or solicitation of an offer to buy, nor will there be any sales of securities in any jurisdictions where any such offer, solicitation, or sale would be unlawful.
Midtown Partners & Co., LLC acted as placement agent for the transaction.
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