PARAMUS, N.J., April 1, 2013 /PRNewswire/ -- Proteonomix,
Inc. (OTC: PROT), a biotechnology company focused on developing
therapeutics based upon the use of human cells and their
derivatives, today announced that it has settled investor
litigation upon the following terms and conditions:
1) The Company will pay to the Investors, a group of ten
funds, $200,000, the first
$50,000 in cash due and payable
today, with the remaining $150,000 to
be paid through the issuance of common stock. That stock will total
300,000 shares and will be released in 50,000 shares traunches
commencing today and equal traunches will be released every five
trading days until the 300,000 share total is released. All
shares issued pursuant to this Agreement will be free trading.
2) If the liquidation of the above mentioned shares
does not equal $150,000, then the
Company may either execute a sixty day note for the balance, or
issue additional shares until the $150,000 sum has been reached.
3) If the above mentioned shares are not delivered in a
timely fashion then the Investors shall be entitled to 125% of the
assumed value of the shares as liquidated damages.
4) 441 shares of Series E Preferred Stock held by the
Investors will be converted into 358,537 free trading common stock
at the conversion price of $1.23.
5) An additional 1,540 shares of free trading stock will
be issued to one investor to rectify a prior issuance error.
6) A swap of 151,647 free trading shares will be made with
four investors holding restricted shares.
7) The Company shall issue new Series A and Series B
Warrants to the investors. The only changes to these warrants
are the exercise price and term. All of these warrants shall have a
five year term and are exercisable at $0.75 an $1.50,
respectively. Upon issuance of these new warrants, the old Series A
and Series B Warrants are null and void.
8) The existing Series C Warrants become null and
void.
9) The settlement was also facilitated by the agreement of
Proteonomix Ltd. to issue free trading shares to the investors as
if all Series E Preferred shares that were still unconverted at the
date of the Agreement as if they had been issued prior to the
January 18, 2013 so that those
Preferred holders could receive shares of Proteonomix, Ltd. as if
holders on that date. In addition, Proteonomix Ltd. has
agreed to issue one free trading share to the investors for each
share that could be exercised pursuant to the new A Warrant
immediately and without cost to the investor.
10) In exchange, the investors have released the
company and dismissed their suit.
About Proteonomix, Inc.
Proteonomix is a biotechnology company focused on developing
therapeutics based upon the use of human cells and their
derivatives. Additional information is available at
www.proteonomix.com and www.proteoderm.com.
Certain statements contained herein are "forward-looking
statements" (as defined in the Private Securities Litigation Reform
Act of 1995). Proteonomix, Inc. cautions that statements made in
this press release constitute forward-looking statements and makes
no guarantee of future performance. Actual results or developments
may differ materially from projections. Forward-looking statements
are based on estimates and opinions of management at the time
statements are made.
SOURCE Proteonomix, Inc.
