Applied DNA Sciences, Inc. Closes on $5.5 Million of Financing
Published: Jan 10, 2013
STONY BROOK, NY--(Marketwire - January 10, 2013) - Applied DNA Sciences, Inc. (OTCBB: APDN) (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, announced it has closed on an additional $5.5 million (Second Closing), bringing the total amount of financing to $7.5 million with institutional accredited investor, Crede CG II, Ltd. ("Crede").
As announced in November 2012, when the Company closed on the initial $2 million in financing, Crede was obligated to invest an additional $5,500,000 in convertible preferred stock of the Company on the first business day following the date a registration statement providing for the resale of the shares of common stock issued and issuable to Crede was declared effective by the Securities and Exchange Commission. The registration statement was declared effective January 4, 2013. The closing, on January 7, 2013, was at $1,000 per share of preferred stock which preferred stock was subsequently fully converted into 25,462,963 shares of common stock by the Company on January 8, 2013 at a conversion price of $0.216/share.
Series C Warrants to purchase 26,881,720 shares of Common Stock become exercisable for six months after the eleventh trading day following the Second Closing. It is the Company's intention to exercise its right to repurchase these Series C Warrants for $50,000 at the close of trading on the tenth trading day following the Second Closing.
The investor is limited to 9.9% ownership at any given point in time. The investor is in a "passive" position and will not occupy a Board position.
More detailed information on this financing can be found in the Form 8-K filed with the SEC.
APDN intends to use the additional capital to take advantage of developments in its business verticals in recent months, including in electronics, textiles, and anti-theft products. The company has already expanded its plant and staff in order to accommodate this progression, and aims to continue and broaden that expansion.
Dr. James A. Hayward, President and CEO of Applied DNA Sciences, said, "This financing comes at an excellent time. We are at a crucial stage in the development of Applied DNA Sciences. Access to this capital enhances our capacity to respond to growth opportunities."
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and smartDNA, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators.
The statements made by APDN may be forward-looking in nature. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K, filed on December 20, 2012 and our subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
Web site: http://www.adnas.com
Twitter: @APDN, @APDNInvestor