Ocata Therapeutics Inc fka OCAT

[OcataMattaDingDong]

I had chance to go over the offering. Is my understanding correct below?

The Offering:

We are offering 5,500,000 shares of our common stock and warrants to purchase up to 2,750,000 shares of our common stock (and the shares of common stock that are issuable from time to time upon exercise of the warrants). The common stock and warrants will be sold in combination, with one warrant to purchase 0.50 shares of common stock for each share of common stock sold. The combined purchase price for each share of common stock and accompanying warrant is $5.50. The shares of common stock and warrants are immediately separable and will be issued separately. Our common stock is listed on the Nasdaq Global


The warrants will become exercisable on December 22, 2015, and will remain exercisable until December 22, 2020. The exercise price for the warrants initially will be $7.48, and will be subject to adjustments as described herein.


1. So for each share purchase, the buyer receives a warrant to buy 1/2 share.


2. If all warrants are executed, the total number of shares from this offering would be 5.5. + 2.75M = 8, 250,000.


3. Again, if all warrants are executed that would mean the net price paid for offered shares would be 30M / 8, 250, 000 = 3.63 per share. (approx.)


4. If warrants are all executed, the total increase in post common shares from the current offering will be 8, 250, 000.

If so, man are they desperate. Why not just sell to LP w/o warrants?