Replies to post #600 on Pressure Biosciences Inc (PBIO)

[ProfitScout]

Pressure BioSciences (PBIO) Secures Funding Allowing for Accelerated Corporate Development -- SECFilings.com

REDONDO BEACH, CA--(Marketwired - Nov 4, 2016) - SECFilings.com, a leading financial news and information portal offering free real time public company filing alerts, announces the publication of an article on the impact a recent financing has on Pressure Biosciences Inc. (OTCQB: PBIO). The company announced yesterday the closing of a $2 million line of credit, on quite favorable terms, that should fund Pressure Bio comfortably for the next 6 months or so.

A few things stand out in reviewing the deal. First, the interest rate is between 10% and 18%, depending on the timing of the repayment of any credit issued. In the world of small and micro-cap public financing, that equates to a very favorable deal and could be read as a vote of confidence by the noteholder.

Second, Pressure Bio granted the noteholder warrants with an exercise price of $0.40/share as part of the initial cash advances. The stock closed at a price of just under $0.29 cents on November 3 (the date of the announcement and accompanying 8-K filing). So the $0.40 warrants represent an approximately 38% premium to the market price of the stock. This should be read as another vote of confidence by the investor, as above-market financings are no small accomplishment.

Third, the investor initially advanced $250,000 (the agreed-upon size of each advance) on October 28. Under the terms of the agreement, the investor is under no obligation to provide any more than a $250,000 advance in any given 15 day period. Regardless, the noteholder chose to advance another $250,000 just 5 days later, on November 2. This is yet another vote of confidence.

The new financing arrangement allows the company some breathing room as it works toward profitability. It also allows management time to focus on achieving the company's stated goals, something the company has shown it can do over the past several quarters. Imagine the results when the CEO actually spends more time at his PBIO desk rather than on the road.

Though it doesn't look like an up-listing is in the cards for this calendar year, it remains a stated goal of the company and would provide greater visibility and liquidity for the stock as institutional investors generally are limited in their involvement with OTC stocks. On top of that, retail brokers have a difficult time getting compliance approval to allow them to introduce their individual investors to OTC stocks.

In the meantime, a financing involving warrants with an exercise price at a 38% premium to the market should be very attractive over the short term as Pressure Bio continues to increase customers, revenues and margins.

Click here to read the full article: http://analysis.secfilings.com/articles/122-pressure-biosciences-pbio-secures-funding-allowing-for-accelerated-corporate-development

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Paul Archie
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[namtae]

WOW, this ceo is some kind of spin doctor!!

Mr. Richard T. Schumacher, President and CEO of PBI, commented: "We are pleased that a long-term, accredited investor of the Company has offered us the ability to borrow up to $2 million under very favorable terms, including warrants priced significantly above today's market. We believe access to this capital will allow us to increase our focus on the continued expansion of our sales and marketing capabilities, enhancements in infrastructure, improvements in efficiency, and other measures that will help to increase revenue while decreasing costs as we march towards our goal of profitability."

How can a Note with a 10-18% coupon be considered favorable terms? Thats usually the default rate on most Notes!! Plus add in what looks to be 5,000,000 CASHLESS warrants, which will bring PBIO no cash if exercised

The fact the cash is being spread out in tranches speaks to the concern the investor probably has regarding its uses. As highlighted above, holders are growing very weary listening to the same old BS about using new capital to expand sales & marketing which doesnt materialize. Instead, its spent on trips to equity conferences and other nonsense. My guess is the capital comes in tranches to make sure previous installments are used wisely..

As evidence, shareholders should understand one to the contingencies for future advances is the following:

the Holder agrees to make the requested principal advance to the Company

BOMBSHELL!! This appears to be putting PBIO on notice, the lender can walk away at any time and cut PBIO off!! They arent going to watch the capital be used foolishly or for purposes other than what the lender decides is appropriate

Conclusion, its the best deal PBIO can find and it may just force them to stay on track instead of throwing money away on unnecessary garbage like these equity conferences that yield nothing