In the last trading session, the stock price of Protalix Biotherapeutics Inc (NYSEMKT:PLX) surged more than 11% to close the day at $0.335. The gains came at a share volume of 11.68 million compared to average share volume of 1.77 million.
Thinly traded nano cap Protalix recently confirmed on convertible debt exchange planned in a private placement. The deal calls for the exchange of $54.1 million total principal amount of the firm’s unpaid 4.50% Senior Convertible Notes payable 2018 for $40.2 million of newly released 7.50% Senior Secured Convertible Notes payable 2021.
Concurrently, it has approved to sell $22.5 million of the 2021 Notes to eligible investors. The closing date for both deals was set as December 7, 2016. The 2021 Notes will be protected by perfected liens on company’s material assets. The interest of 7.50% will be compensated semi-annually and, in specific circumstances, the firm may choose to pay up to 1.25% of the stake in shares of common stock. These notes are intended to mature in November 2021.
The initial conversion price for over 1.176 million shares of stock per $1,000 principal amount of ‘Notes’, which is equal to a preliminary conversion price of nearly $0.85 a share of Common Stock, and is reliant to adjustment in certain terms. This preliminary conversion price shows a premium of almost 52% relative to the closing rate of the firm’s common Stock of $$0.5595 on December 1, 2016. Net funds will boost clinical trials, working capital, general corporate and R&D purposes.
Holders may need Protalix to buy again their Notes upon the happening of certain events that comprise a fundamental change under the deal at a purchase price equivalent to the principal sum thereof plus unpaid and accrued interest to, but discounting, the fundamental change buying date.
Notes holders may convert it at any time before the close of operations on the business day immediately earlier to the revealed maturity date of the Notes. After conversion, the firm may, at its election, offer cash, shares of Common Stock, or a combination of both depending on the applicable conversion rate.