Intellect Neurosciences Inc. (fka ILNS)

[Dubb10]

On cue....

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11342857

the Company sold an aggregate of $250,000 principal amount of its convertible promissory notes (each, a “ Note ”) to the Investors (the “ Financing ”). The Company received $250,000 gross proceeds. The Company also entered into agreements with other accredited investors for an additional $250,000 but has not closed yet on such amount and there can be no assurance that such additional subscriptions or any other additional subscriptions will be consummated.

The Notes are convertible, at the option of the holder, into shares of the Company’s common stock, par value $0.001 per share, at a per share price of $0.10 (the “ Conversion Price ”), subject to adjustment as provided in the Notes and subject to a total beneficial ownership limitation of 9.99% of the Company’s issued and outstanding common stock. Each Note has a maturity date (the “ Maturity Date ”) that is two years from the Closing Date. The Maturity Date may be accelerated, at the option of the holder, upon the occurrence of a Major Liquidity Event or a Minor Liquidity Event (each as defined in the Note).

The Company intends to use the net proceeds from the Financing to pay $100,000 principal amount of outstanding promissory notes held by the Junior Lenders; to fund certain pre-clinical studies; and for general corporate purposes.