Pressure BioSciences, Inc. Closes $2,000,000
Line-of-Credit Access to Capital will Enable the Company to
Increase Its Focus on Growth and Stability
South Easton, MA -- November 3, 2016 -- InvestorsHub NewsWire --
Pressure BioSciences, Inc. (OTCQB: PBIO) (PBI and the Company), a
leader in the development and sale of broadly enabling constant
pressure and pressure cycling technology (PCT)-based sample
preparation solutions to the large and growing worldwide life
sciences industry, today announced it has closed a $2 million
line-of-credit with an accredited investor.
On October 28, 2016, an accredited investor (the Investor)
purchased from Pressure BioSciences Inc., a Promissory Note in the
aggregate principal amount of up to $2,000,000 (the Note) due and
payable on the earlier of October 28, 2017 (the Maturity Date) or
on the seventh business day after the closing of a Qualified
Offering (as defined in the Note). On the same day, the Company
received its initial $250,000 advance pursuant to the Note and
issued to the Investor a five-year Common Stock Purchase Warrant
(the First Warrant) to purchase 625,000 shares of the Company's
common stock (Common Stock) at an exercise price equal to $0.40 per
share. The Investor is obligated to provide the Company $250,000
advances under the Note, but the Investor is not required to
advance more than $250,000 in any individual fifteen (15) day
period and no more than $500,000 in the thirty (30) day period
immediately following the date of the initial advance.
Notwithstanding the fifteen (15) day period limitation, on November
2, 2016, the Company received a second $250,000 advance pursuant to
the Note and the Company issued to the Investor the Second Warrant
to purchase an additional 625,000 shares of the Common Stock.
The terms of the First and Second Warrants are identical except
for the exercise date, issue date, and termination date. Interest
on the principal balance of the Note is to be paid in full on the
Maturity Date but may be prepaid without penalty. Interest will be
assessed between 10% and 18% as more clearly delineated in the
Note. The Investor will also receive 100% warrant coverage on the
amount borrowed within seven days of each advance, with an exercise
price of $0.40 and a term of five years. The Investor will also
receive an origination fee of 5% of the amounts borrowed, payable
in cash or in-kind.
For more information on these and other terms of the Note and
the Common Stock Purchase Warrant, please see the Form 8K filed on
November 3, 2016.
Mr. Richard T. Schumacher, President and CEO of PBI, commented:
We are pleased that a long-term, accredited investor of the Company
has offered us the ability to borrow up to $2 million under very
favorable terms, including warrants priced significantly above
todays market. We believe access to this capital will allow us to
increase our focus on the continued expansion of our sales and
marketing capabilities, enhancements in infrastructure,
improvements in efficiency, and other measures that will help to
increase revenue while decreasing costs as we march towards our
goal of profitability.
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. (PBI) (OTCQB: PBIO) develops,
markets, and sells proprietary laboratory instrumentation and
associated consumables to the estimated $6 billion life sciences
sample preparation market. Our products are based on the unique
properties of both constant (i.e., static) and alternating (i.e.,
pressure cycling technology, or PCT) hydrostatic pressure. PCT is a
patented enabling technology platform that uses alternating cycles
of hydrostatic pressure between ambient and ultra-high levels to
safely and reproducibly control bio-molecular interactions. To
date, we have installed over 260 PCT systems in approximately 160
sites worldwide. There are over 100 publications citing the
advantages of the PCT platform over competitive methods, many from
key opinion leaders. Our primary application development and sales
efforts are in the biomarker discovery and forensics areas.
Customers also use our products in other areas, such as drug
discovery & design, bio-therapeutics characterization, soil
& plant biology, vaccine development, histology, and forensic
applications.
Forward Looking Statements
Statements contained in this press release regarding PBI's
intentions, hopes, beliefs, expectations, or predictions of the
future are "forward-looking'' statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are based upon the Company's current expectations, forecasts, and
assumptions that are subject to risks, uncertainties, and other
factors that could cause actual outcomes and results to differ
materially from those indicated by these forward-looking
statements. These risks, uncertainties, and other factors include,
but are not limited to, the risks and uncertainties discussed under
the heading "Risk Factors" in the Company's Annual Report on Form
10-K for the year ended December 31, 2015, and other reports filed
by the Company from time to time with the SEC. The Company
undertakes no obligation to update any of the information included
in this release, except as otherwise required by law.
For more information about PBI and this press release, please click
on the following website link: http://www.pressurebiosciences.com
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Investor Contacts:
Richard T. Schumacher, President & CEO (508) 230-1828
(T)
Jeffrey N. Peterson, Chairman (650) 812-8121 (T)
Pressure Biosciences (QB) (USOTC:PBIO)
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