ALACHUA, Fla.--(BUSINESS WIRE)--On December 30, 2009, Oragenics, Inc. (OTCBB:ORNI) (the “Company”) consummated a private placement of equity pursuant to a Common Stock Purchase Agreement (the “Agreement”) with accredited investors. Pursuant to the terms of the Agreement, the Company issued 10,016,250 shares of its Common Stock at a price of $0.25 per share to the investors for $2,504,062.50, the payment of which consisted of the following: $2,450,000 in cash at closing and $54,062.50 pursuant to the cancellation of the same dollar amount of outstanding deferred compensation obligation owed by the Company to Dr. Jeffrey Hillman. Approximately half of the total investment, or $1,250,000, was made by the Koski Family Limited Partnership (the “KFLP”). In conjunction with, and as a condition to closing of the financing, the KFLP was issued 4,000,000 shares of the Company’s Common Stock at $0.25 per share, which was the same price per share paid by the investors, in exchange for the cancellation of its $1.0 million secured note. The loan originally had been secured by substantially all of the Company’s assets (excluding receivables) and required interest payments at the rate of Prime plus 4.0% which were payable quarterly. The transaction was consummated pursuant to, and in reliance upon, an exemption from registration set forth under Section 4(2) of the Securities Act of 1933 as amended, as this transaction did not involve a public offering.
