Applied DNA Announces Repayment of Secured Convertible Notes
October 08 2020 - 9:00AM
Business Wire
- Repayment Funded by Warrant Exercise of
318,000 Warrants Issued in Connection with November 15, 2019
Underwritten Public Offering -
Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the
"Company"), a leader in Polymerase Chain Reaction (PCR)-based DNA
manufacturing that enables in vitro diagnostics, pre-clinical
nucleic acid-based therapeutic drug candidates, supply chain
security, anti-counterfeiting, and anti-theft technology, today
announced that it entered into an agreement (the “Agreement”) with
the sole holder (the “Holder”) of its outstanding July 16, 2019,
secured convertible notes (the “Notes”) for the repayment in full
of the Notes, in an aggregate amount of approximately $1.7 million,
representing the outstanding amount of the Notes plus interest
through the scheduled maturity of the Notes. In conjunction,
affiliates of the Holder will exercise warrants issued as part of
the Company’s November 15, 2019, underwritten public offering (the
“2019 Warrants”) for total proceeds to the Company of approximately
$1.7 million. Not all of the Holder’s 2019 Warrants will be
exercised in connection with the repayment of the Notes. As a
result of the repayment of the Notes, approximately $1.5 million of
debt and liabilities will be extinguished from the Company’s
balance sheet, leaving the Company debt-free. In addition, the
security interests in the Company’s property granted to secure the
Notes will be released.
In connection with a warrant exercise agreement with affiliates
of the Holder, in addition to the shares of common stock issued
upon exercise of the 2019 Warrants by such affiliates, the Company
will issue replacement warrants (the “Replacement Warrants”) to
such affiliates of the Holder in an amount equal to one half the
amount of the 2019 Warrants exercised in connection with the Notes
repayment. The Replacement Warrants have an exercise price equal to
the closing price of the Company’s common stock on October 7, 2020.
In addition, until January 5, 2021, if affiliates of the Notes
holder exercise additional 2019 Warrants, the Company will issue to
such affiliates additional Replacement Warrants in an amount equal
to one half the amount of such exercised warrants and with an
exercise price equal to the closing price of the Company’s common
stock on the date the related 2019 Warrants are exercised. The
Replacement Warrants will not be registered nor listed on any
exchange but will be the subject of a registration rights agreement
pursuant to which the Company agrees to file a registration
statement with respect to the common stock underlying the
Replacement Warrants.
“The opportunistic elimination of our outstanding Notes
preserves our cash balance to fund the execution of our COVID-19
diagnostics and testing strategy that we believe holds the
potential to impact our growth trajectory positively,” said Dr.
James A. Hayward, president and CEO, Applied DNA Sciences. “Having
built a solid strategic foundation and following the receipt of our
first commercial contract for our COVID-19 diagnostic assay kits,
we are working diligently to commercialize our testing-as-a-service
program at our clinical laboratory subsidiary.”
About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable
supply chain security, anti-counterfeiting and anti-theft
technology, product genotyping and pre-clinical nucleic acid-based
therapeutic drug candidates.
Visit adnas.com for more information. Follow us on Twitter and
LinkedIn. Join our mailing list.
The Company’s common stock is listed on NASDAQ under ticker
symbol ‘APDN’, and its publicly traded warrants are listed on OTC
under ticker symbol ‘APPDW’.
Applied DNA is a member of the Russell Microcap® Index.
Forward-Looking Statements
The statements made by Applied DNA in this press release may be
“forward-looking” in nature within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995. Forward-looking statements describe Applied DNA’s future
plans, projections, strategies and expectations, and are based on
assumptions and involve a number of risks and uncertainties, many
of which are beyond the control of Applied DNA. Actual results
could differ materially from those projected due to, its history of
net losses, limited financial resources, potential dilution to
common stockholders caused by exercise of the Replacement Warrants,
limited market acceptance, the uncertainties inherent in research
and development, future clinical data and analysis, including
whether any of Applied DNA’s or its partners diagnostic or vaccine
candidates will advance further in the preclinical research or
clinical trial process, including receiving clearance from the U.S.
Food and Drug Administration (“FDA”) or equivalent foreign
regulatory agencies to conduct clinical trials and whether and
when, if at all, they will receive final approval from the U.S. FDA
or equivalent foreign regulatory agencies, the unknown outcome of
any applications or requests to U.S. FDA, equivalent foreign
regulatory agencies and/or the New York State Department of Health,
the unknown limited duration of any Emergency Use Authorization
approval from U.S. FDA, disruptions in the supply of raw materials
and supplies, and various other factors detailed from time to time
in Applied DNA’s SEC reports and filings, including its Annual
Report on Form 10-K filed on December 12, 2019, as amended and its
subsequent quarterly reports on Form 10-Q filed on February 6,
2020, May 14, 2020 and August 6, 2020, and other reports it files
with the SEC, which are available at www.sec.gov. Applied DNA
undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, unless otherwise required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201008005501/en/
Investor contact: Sanjay M. Hurry, Applied DNA Sciences,
917-733-5573, sanjay.hurry@adnas.com
Web: www.adnas.com
Twitter: @APDN
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