Nephros Inc (NEPH)

[mikeyk]

Fully aware of the financing, awesome that it was equity financing with restricted and unregistered shares and can't be sold until January 2010. Then theres also the option to purchase warrants which also could provide additional capital to the company. Small amount of dilution in the long term, but it beats the hell out of financing via a CD. From the 7/30/2009 8K filing:



Item 3.02. Unregistered Sales of Equity Securities.


On July 24, 2009, we raised gross proceeds of $1,251,000 through the private placement to eight accredited investors of an aggregate of 1,345,161 shares of our common stock and warrants to purchase an aggregate of 672,581 shares of our common stock, representing 50% of the shares of common stock purchased by each investor. We sold the shares to investors at a price per share equal to $0.93. The warrants have an exercise price of $1.12, are exercisable immediately and will terminate on July 24, 2014.


Each investor agreed that it will not sell, pledge, sell short or otherwise dispose of any of the purchased shares or warrants during the period commencing on the date of purchase and ending on January 31, 2010.


The shares of common stock and the warrants issued to the investors were not registered under the Securities Act of 1933, as amended, in reliance upon the exemption from registration provided by Section 4(2) and Regulation D thereunder. A copy of the form of warrant issued to the investors and a copy of the form of subscription agreement entered into by us and each investor will be filed as exhibits to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.


On July 30, 2009, we issued a press release regarding the offering. A copy of the press release is attached hereto as Exhibit 99.1.