Applied DNA Sciences Announces $7.5 Million Financing
November 29 2012 - 5:48PM
Marketwired
Applied DNA Sciences, Inc. (OTCBB: APDN), (Twitter: @APDN), a
provider of DNA-based anti-counterfeiting technology and product
authentication solutions, announced today that it has entered into
a Securities Purchase Agreement (the "Agreement") with an
institutional accredited investor, Crede CG II, Ltd., to provide a
minimum of $7.5 Million in financing. At the initial closing, the
Company received gross proceeds of $2,000,000 in exchange for
restricted common stock priced at $0.186/share.
Pursuant to the Agreement, the investor is obligated to invest
an additional $5,500,000 in convertible preferred stock of the
Company on the date a registration statement providing for the
resale of the securities issued is declared effective by the
Securities and Exchange Commission ("Second Closing"). This closing
will be done at $1,000 per share of preferred stock with a
conversion price the lesser of market or $0.186/share. The investor
is limited to 9.9% ownership at any given point in time. The
investor is in a "passive" position and will not occupy a Board
position. The preferred stock will generally be non-voting with no
dividends and will rank senior to the common stock on liquidation.
The preferred stock is subject to conversion into common stock at
the Company's option following effectiveness of the registration
statement and automatically converts after one year.
Warrants issued as a part of this financing could contribute up
to an additional $9.0 million in funds to the company if exercised
for cash. Warrants would be exercised at a strike price equal to
$.2232 per share which is a 20% premium to the original purchase
price of $0.186/share. The Company intends to file a registration
statement covering the common stock and common stock underlying
warrants and preferred stock.
More detailed information on this financing can be found in the
Form 8-K filed with the SEC.
APDN intends to use the additional capital to take advantage of
recent developments in its business verticals in recent months,
including in electronics, textiles, and anti-theft products. The
company has already expanded its plant and staff in order to
accommodate this progression, and aims to continue and broaden that
expansion.
Dr. James A. Hayward, President and CEO of Applied DNA Sciences,
said, "This is a crucial stage in the development of Applied DNA
Sciences. Access to this capital enhances our capacity to respond
to growth opportunities, including those subsequent to the US
military mandate that electronic suppliers mark their products
supplied to the Defense Logistics Agency with our SigNature
DNA®."
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and
authentication solutions that can help protect products, brands and
intellectual property of companies, governments and consumers from
theft, counterfeiting, fraud and diversion. SigNature® DNA and
smartDNA, our principal anti-counterfeiting and product
authentication solutions that essentially cannot be copied, provide
a forensic chain of evidence and can be used to prosecute
perpetrators.
The statements made by APDN may be forward-looking in nature.
Forward-looking statements describe APDN's future plans,
projections, strategies and expectations, and are based on
assumptions and involve a number of risks and uncertainties, many
of which are beyond the control of APDN. Actual results could
differ materially from those projected due to our short operating
history, limited financial resources, limited market acceptance,
market competition and various other factors detailed from time to
time in APDN's SEC reports and filings, including our Annual Report
on Form 10-K, filed on December 8, 2011 and our subsequent
quarterly reports on Form 10-Q. APDN undertakes no obligation to
update publicly any forward-looking statements to reflect new
information, events or circumstances after the date hereof to
reflect the occurrence of unanticipated events.
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MEDIA CONTACT: Mitchell Miller 646-543-3373 fax: 631-444-8848
INVESTOR CONTACT: Debbie Bailey 631-444-8090 fax: 631-444-8848 FCMN
Contact: Email Contact Web site: http://www.adnas.com Twitter:
@APDN, @APDNInvestor
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