Cosmos Holdings Announces Closing of $6 Million Private Placement of Convertible Preferred Stock and Start of Trading on the Nasdaq

About this update from Cosmos Health Inc.

[{"type":"text","content":"CHICAGO, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Cosmos Holdings, Inc. (“the Company\") (Nasdaq: COSM), an international pharmaceutical company with a proprietary line of nutraceuticals and distributor of branded and generic pharmaceuticals, nutraceuticals, OTC medications and medical devices, today announced the closing of a private placement offering to certain institutional investors and an insider of the Company to purchase 6,000 shares of Series A Convertible Preferred Stock and warrants to purchase 2,000,000 shares of common stock. Each share of Series A Convertible Preferred Stock had a purchase price of $1,000.00, representing 100% of the stated value of each share of preferred stock, resulting in gross proceeds of approximately $6 million, before deducting financial advisory fees and other estimated offering expenses. In connection with the private placement offering, the Company’s common stock has commenced trading on the Nasdaq Capital Market, under the trading symbol COSM. The Company and the holders of the Series A Convertible Preferred Stock also entered into a registration rights agreement to register the resale of the shares of common stock issuable upon conversion of the preferred shares and the shares of common stock issuable upon exercise of the warrants to purchase shares of common stock. The Series A Convertible Preferred Stock is convertible into shares of the Company’s common stock at the lower of (i) $3.00 or (ii) 80% of the average VWAP for the Company’s common stock for the five (5) trading days immediately following the effectiveness of the resale registration statement. The warrants are exercisable at $3.30 per share, or 110% of the Series A Convertible Preferred Stock conversion price, subject to certain adjustments, and will expire five and one-half years following the initial exercise date of the warrants. The Series A Convertible Preferred Stock, the shares of common stock issuable upon conversion of the preferred stock, and the warrants are being issued in reliance upon the exemption from the securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and/or Rule 506 of Regulation D as promulgated by SEC under the 1933 Act. The Series A Convertible Preferred Stock, the shares of common stock issuable upon conversion of the preferred stock, and the warr...

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