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Eterna Therapeutics Announces Completion of $8.7 Million of Convertible Debt Financing
CAMBRIDGE, MASS., July 18, 2023 (GLOBE NEWSWIRE) -- Eterna Therapeutics Inc. (Nasdaq: ERNA) (“Eterna” or the “Company”), a life science company committed to
About this update from Ernexa Therapeutics Inc.
[{"type":"text","content":"CAMBRIDGE, MASS., July 18, 2023 (GLOBE NEWSWIRE) -- Eterna Therapeutics Inc. (Nasdaq: ERNA) (“Eterna” or the “Company”), a life science company committed to realizing the potential of mRNA cell engineering to provide patients with transformational new medicines, today announced the execution and closing of the sale of approximately $8.7 million aggregate principal amount of senior convertible promissory notes and accompanying warrants to purchase common stock in a private placement transaction that closed on July 14, 2023 and was priced at-the-market under Nasdaq rules. The notes, which were issued at par, bear interest at a rate of 6.0% per year, payable quarterly, and mature in July 2028 unless earlier redeemed, repurchased or converted in accordance with their terms. At its election, the Company may pay interest in cash or in-kind by increasing the outstanding principal amount of the notes. The notes may be converted from time to time in whole or in part into shares of Eterna common stock at a conversion price of $2.86 per share, subject to customary adjustments for stock splits, stock dividends and recapitalizations. The notes do not contain any ratchet or other financial antidilution provisions. Each purchaser of the convertible notes received warrants to purchase 200% of the number of shares of Eterna common stock into which such purchaser’s note is initially convertible. The warrants are immediately exercisable, have an exercise price of $2.61 per share and expire in July 2028. Mr. Brant Binder and Dr. Richard Wagner, current directors of the Company, and former directors, Mr. Charles Cherington and Mr. Nicholas Singer, participated in the private placement on the same terms and subject to the same conditions as all other purchasers. The offer and sale of the securities by Eterna described in this press release have not been registered under the Securities Act of 1933, as amended (the \"Securities Act\"), and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful...