iSpecimen Inc. (Nasdaq: ISPC), an online global marketplace connecting scientists with healthcare specimen providers for medical research, announced that it has entered into a securities purchase agreement with accredited investors providing for aggregate gross proceeds of approximately $5.5 million, before placement agent fees and other offering expenses, subject to customary closing conditions.
In connection with the offering, the Company will issue 6,875 shares of newly designated Series C Convertible Preferred Stock at a purchase price of $800 per share. Each share of Preferred Stock has a stated value of $1,000 and is convertible into shares of the Company’s common stock at a conversion price equal to 85% of the closing price of the common stock on the trading day immediately preceding each conversion date.
The offering is being conducted as a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933 and Regulation D thereunder and is being made exclusively to accredited investors. Pursuant to a registration rights agreement, the Company has agreed to file one or more registration statements covering the resale of the shares of common stock issuable upon conversion of the Preferred Stock.
Net proceeds from the offering are expected to be used for marketing initiatives, working capital, and general corporate purposes.
E.F. Hutton & Co. is acting as the exclusive placement agent in connection with the offering. Lucosky Brookman LLP represented E.F. Hutton & Co. as placement agent counsel.
