As ecmoney pointed out, the pre-funded warrants were purchased at .0001 and could be exercised right away…this can also help to explain some of the selling for profit.
In reading through this and looking in hindsight, I probably should have sold when the S-1 came out and then wait and hold for when things stabilized again.
On November 11, 2021 (the “Signing Date”), we entered into a securities purchase agreement (the “Purchase Agreement”) with several institutional and accredited investors pursuant to which we sold to the investors in a private placement an aggregate of (i) 15,922,156 shares of common stock (the “Shares”), (ii) pre-funded warrants to purchase up to an aggregate of 4,811,181 shares of common stock (the “Pre-Funded Warrants”) and (iii) warrants to purchase up to an aggregate of 20,733,337 shares of common stock for gross proceeds to the Company of approximately $3,100,000. The combined purchase price for one share of common stock and a warrant to purchase one share of common stock is $0.15 and the purchase price for one pre-funded warrant to purchase one share of common stock is $0.1499. The closing for the sale of the Shares, Pre-Funded Warrants and Warrants occurred on November 16, 2021.
We intend to use the net proceeds primarily to expand and accelerate the development of Microbuddies, as well as for working capital and general corporate purposes.
The Pre-Funded warrants have an exercise price of $0.0001 per share, subject to adjustment and no expiration date. The Pre-Funded Warrants are exercisable immediately (subject to the Beneficial Ownership limitation as set forth in the Prefunded Warrant) and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.
