During the nine months ended February 28, 2019, the Company granted a stock option award covering
950,000 shares of common stock with an exercise price of $0.49 per share, to its Executive Chairman. This stock option award vests ratably over 24 months, has
a ten-year term
and a grant date fair
value of $0.41 per share.
During the nine months ended February 28, 2019, the Company granted stock options, covering an aggregate of 875,000 shares
of common stock, to executive management and employees with exercise prices of $0.49 per share. The stock option awards vest annually over three years, with
a ten-year term
and grant date fair values
of $0.31 per share. Additionally, the Company granted a stock option covering an aggregate of 1,000,000 shares of common stock, to an officer with an exercise price of $0.565 per share. The stock option award vests 50% upon grant and 50% on
April 8, 2019; it has a
ten-year
term and grant date fair value of $0.30 per share. The Company also granted stock options, covering an aggregate of 500,000 shares of common stock to certain directors
with an exercise price of $0.565 per share. The stock option awards vest upon grant, have a
ten-year
term and grant date fair value of $0.30 per share.
During the nine months ended February 28, 2019, the Company granted a stock option award covering 350,000 shares of common stock with an exercise price
of $0.551 per share to Dr. Richard G. Pestell, M.D., Ph.D., in connection with his employment agreement as Chief Medical Officer and the closing of the ProstaGene transaction described in Note 7. The stock option award vests annually over
three years, with a
ten-year
term and grant date fair value of $0.30 per share.
During the nine months ended
February 28, 2019, the Company granted a stock option award covering 400,000 shares of common stock with an exercise price of $0.48 per to the Companys Chief Technology Officer, in connection with his employment agreement. The stock
option award vests annually over three years, has a
ten-year
term and grant date fair value of $0.26 per share.
On January 4, 2019, in connection with the resignation of a director, the Companys Board of Directors approved a motion to accelerate all
outstanding unvested stock options held by the director, to vest immediately upon the effectiveness of his resignation and to retain the stock options exercise period through their respective expiration date. Stock options covering 1,145,834
shares of common stock were subject to acceleration. The other terms of the accelerated stock options remained otherwise unchanged. In addition, the expiration terms of certain other previously awarded stock options covering an aggregate of 150,000
shares common stock were extended from five years to 10 years. The other terms of the extended stock options remained otherwise unchanged.
Warrants
During the year ended May 31, 2018, the Company determined to extend the expiration dates of certain warrants from May 31, 2017 to
June 30, 2017 covering 3,295,000 shares of common stock. The warrants were originally issued in connection with 2012 convertible promissory notes and had an amended exercise price of $1.00 per share. The extension to June 30, 2017 was
contingent upon immediate exercise of the warrants at a reduced exercise price of $0.50 per share. The Company received proceeds of approximately $1.6 million and, pursuant to U.S. GAAP, the Company
recognized non-cash inducement
interest expense of approximately $0.8 million, which represented the incremental increase in the fair value of the extended warrants.
On June 15, 2018, in connection with a registered direct equity offering, as fully described in Note 11, the Company issued warrants covering 1,970,000
shares of common stock to investors. The investor warrants have a five-year term and an exercise price of $0.75 per share. In connection with the registered direct offering, the Company also issued warrants covering 133,600 shares of common stock to
the placement agent. The placement agent warrants have a five-year term and an exercise price of $0.55 per share.
During the nine months ended
February 28, 2019, in connection with a private equity offering, as fully described in Note 10, the Company issued common stock warrants covering a total of 23,487,585 shares of common stock to investors. The investor warrants have a five-year
term and an exercise price of $0.75 per share. In connection with this offering, the Company also issued common stock warrants covering 4,446,917 shares of common stock to the placement agent. The placement agent warrants have a five-year term, an
exercise price of $0.50 per share and a cashless exercise provision.
During the nine months ended February 28, 2019, the Company issued compensable
warrants covering an aggregate of 300,000 shares of common stock to consultants. The warrants have a five-year term, an exercise price of $0.56 per share and a grant date fair value of $0.30 per share. In addition the Company issued a warrant
covering 500,000 shares of common stock to a director. The warrant has a
ten-year
term, an exercise price of $0.51 per share and a grant date fair value of $0.28 per share.
During the nine months ended February 28, 2019, in connection with the offering of 2019 Short-term Convertible Notes, as fully described in Note 4, the
Company issued common stock warrants covering a total of 5,460,000 shares of common stock to investors. The investor warrants have a five-year term and an exercise price of $0.30 per share. In connection with this offering, the Company also issued
common stock warrants covering 972,000 shares of common stock to the placement agent. The placement agent warrants have a five-year term, an exercise price of $0.50 per share and a cashless exercise provision.
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