Applied DNA Sciences closes $5 million stock deal

Big deal: Applied DNA Sciences CEO James Hayward has a fresh $5 million to re-invest in R&D and business development.

Applied DNA Sciences has closed a roughly $5 million deal with “a single healthcare-dedicated institutional investor,” the company announced late Monday.

The Stony Brook-based supply-chain, anti-counterfeiting, anti-theft and product-authentication specialist first announced the private placement Nov 2. Company officials could not be reached for comment Monday night.

The private investor has purchased more than 2.27 million shares of Applied DNA Sciences common stock at $2.20 per share, for a total price of $4.99 million.

The investor has also purchased warrants – limited-time, discretionary securities that entitle the investor to buy further shares at a fixed price – for another 2.27 million-plus shares. The warrant terms match those of Applied DNA’s publicly traded warrants: an exercise price of $3.50 per share with an expiration date of Nov. 20, 2019.

The company has agreed to file a registration statement providing for the resale of these securities by Dec. 7. Once the statement is approved, it’s expected that the common stock and warrants issued in the private placement will be freely tradeable on the Nasdaq exchange under the symbols “APDN” and “APDNW.”

The roughly $5 million in gross proceeds does not include various offering expenses, including the fees for lead placement agent Maxim Group LLC and co-placement agent Imperial Capital LLC, the company said in a statement.

Applied DNA Sciences – which has enjoyed both domestic and international expansions this year, and in October welcomed former KeySpan and National Grid Chairman Robert Catell to its board of directors – will use the net proceeds for “general corporate purposes” including working capital, business development and R&D, the company said.

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