aibioProvectus Biopharmaceuticals approves plan to seek up to $10,000,000 in convertible notes
Tickers PVCT
The unsecured notes carry 8% interest and convert into Series D-1 preferred stock at $2.8620 per share. The board also approved the closing of a 2024 financing under which the company had received $1,000,000 in notes.
Key facts
- Company
- Provectus Biopharmaceuticals, Inc. (OTC: PVCT)
- News type
- Debt Financing
- Primary source
- Provectus Biopharmaceuticals, Inc. 8-K (2025-01-22)
Provectus Biopharmaceuticals, Inc. (PVCT) said in an 8-K filed January 22, 2025 that its board approved a Financing Term Sheet on January 15, 2025. Under it, the company will use its best efforts to arrange financing of a maximum of $10,000,000, to be obtained in several tranches. It would use the proceeds for its drug discovery and development program and general and administrative expenses.
The financing takes the form of an unsecured convertible loan from various investors, evidenced by convertible promissory notes. The notes bear interest at 8% per annum on funded principal. They are due on the earliest of an event of default, a change of control or twelve months after the issue date.
Investors can convert the principal and interest into Series D-1 Convertible Preferred Stock at any time at $2.8620 per share. The notes convert automatically twelve months after issue at the same price. Each share of Series D-1 Preferred Stock converts into ten shares of common stock.
The board also approved the closing of a financing it approved on July 11, 2024. As of January 15, 2025, the company had received 2024 notes totaling $1,000,000 under that financing.
The company believes the 2024 notes were exempt from registration, and expects the 2025 notes to be exempt, under Section 4(a)(2) of the Securities Act of 1933 or Rule 506.