$PLPL Completes $15.3 Million Funding Commitment
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$PLPL Completes $15.3 Million Funding Commitment
NEW YORK, NY- via eTeligis (Feb 10, 2014) - Planda Biotechnology, Inc. (OTCQB LPL), a producer of highly bioavailable plant extracts for industries including health, wellness, nutraceutical, and pharmaceutical, announced today that it has entered into a stock purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor, whereby Lincoln Park committed to invest, at the Company's sole option, up to $15.3 million of equity capital over the term of the purchase agreement including an initial investment of $300,000.
Roger Duffield, Chief Executive Officer of Planda, commented on the agreement, "This agreement with Lincoln Park gives Planda the flexibility to access capital over the next few years at prevailing market prices and as the need arises.As we enter into production and commence sales in the coming months, it is important to have a strong balance sheet and the ability to continue our research in green tea, citrus and to brand our cannabis extracts under the Diego Pellicer Gold label."
During the 30-month term of the stock purchase agreement the Company, at its sole discretion, has the right to sell to Lincoln Park up to an additional $15 million of its common stock, in amounts as described in the agreement and subject to certain conditions, which include the effectiveness of a registration statement with the U.S. Securities and Exchange Commission covering the sale of the shares that may be issued to Lincoln Park.The Company controls the timing and amount of any future investment and Lincoln Park is obligated to make purchases, if and when the Company decides, in accordance with the purchase agreement.
There are no upper limits to the price Lincoln Park may pay to purchase Planda common stock and the purchase price of the shares related to any future investments will be based on the prevailing market prices of the Company's shares immediately preceding the notice of sale to Lincoln Park.Lincoln Park has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company's shares of common stock.The agreement may be terminated by the Company at any time, at its sole discretion, without any monetary cost.The proceeds from this investment will be used for research, product development, marketing and general operating purposes.
A more detailed description of the agreement is set forth in the Company's Current Report on Form 8-K recently filed with the SEC which the Company encourages be reviewed carefully.
http://www.stockwatch.com/News/Item.aspx?bid=...p;region=U
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