Applied DNA Sciences Announces 7.5 Million Financing
Warrants Could Contribute up to 9.0 Million More
STONY BROOK, NY, Nov 29, 2012 (Menafn - MARKETWIRE via COMTEX) --Applied DNA Sciences, Inc. APDN, (twitter:@APDN), aprovider of DNA-based anti-counterfeiting technology and productauthentication solutions, announced today that it has entered into aSecurities Purchase Agreement (the "Agreement") with an institutionalaccredited investor, Crede CG II, Ltd., to provide a minimum of 7.5Million in financing. At the initial closing, the Company receivedgross proceeds of 2,000,000 in exchange for restricted common stockpriced at 0.186/share.
Pursuant to the Agreement, the investor is obligated to invest anadditional 5,500,000 in convertible preferred stock of the Companyon the date a registration statement providing for the resale of thesecurities issued is declared effective by the Securities andExchange Commission ("Second Closing"). This closing will be done at1,000 per share of preferred stock with a conversion price thelesser of market or 0.186/share. 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. The preferred stockwill generally be non-voting with no dividends and will rank seniorto the common stock on liquidation. The preferred stock is subject toconversion into common stock at the Company's option followingeffectiveness of the registration statement and automaticallyconverts after one year.
Warrants issued as a part of this financing could contribute up to anadditional 9.0 million in funds to the company if exercised forcash. Warrants would be exercised at a strike price equal to .2232per share which is a 20% premium to the original purchase price of0.186/share. The Company intends to file a registration statementcovering the common stock and common stock underlying warrants andpreferred stock.
More detailed information on this financing can be found in the Form8-K filed with the SEC.
APDN intends to use the additional capital to take advantage ofrecent developments in its business verticals in recent months,including in electronics, textiles, and anti-theft products. Thecompany has already expanded its plant and staff in order toaccommodate this progression, and aims to continue and broaden thatexpansion.
Dr. James A. Hayward, President and CEO of Applied DNA Sciences,said, "This is a crucial stage in the development of Applied DNASciences. Access to this capital enhances our capacity to respond togrowth opportunities, including those subsequent to the US militarymandate that electronic suppliers mark their products supplied to theDefense Logistics Agency with our SigNature DNA(R)."
About Applied DNA Sciences
APDN is a provider of botanical-DNA based security and authenticationsolutions that can help protect products, brands and intellectualproperty of companies, governments and consumers from theft,counterfeiting, fraud and diversion. SigNature(R) DNA and smartDNA,our principal anti-counterfeiting and product authenticationsolutions that essentially cannot be copied, provide a forensic chainof 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 involvea number of risks and uncertainties, many of which are beyond thecontrol of APDN. Actual results could differ materially from thoseprojected due to our short operating history, limited financialresources, limited market acceptance, market competition and variousother factors detailed from time to time in APDN's SEC reports andfilings, including our Annual Report on Form 10-K, filed on December8, 2011 and our subsequent quarterly reports on Form 10-Q. APDNundertakes no obligation to update publicly any forward-lookingstatements to reflect new information, events or circumstances afterthe date hereof to reflect the occurrence of unanticipated events.
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Web site: http://www.adnas.com
Twitter: @APDN, @APDNInvestor
SOURCE: Applied DNA Sciences Inc.
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