Adynxx, Inc. (OTCPK:ADYX) announced a private placement of series 2019A convertible promissory notes for gross proceeds of $450,000 in November 2019. The notes accrue interest at a fixed rate of 8% per year and mature on the first anniversary of the applicable issue date, ranging from November 2020 to December 2020. The notes will be automatically converted into common shares of the company in the event that the company issues and sell preferred shares or common shares to investors in a qualified financing with total proceeds of not less than $5,000,000. The notes are convertible at a price equal to the cash price paid per share, in the case of the November notes, or 0.70 multiplied by the cash price paid per share, in the case of the December notes, for equity securities by the investors in the qualified financing. The company may not prepay the notes prior to the maturity date without the consent of the investors of at least a majority of the outstanding unpaid principal amount of the notes. The notes will be issued at par and are redeemable.
On the same day, the company received its first tranche.
Adynxx, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development of a new class of therapeutics called transcription factor decoys and bringing to market disease-modifying products to address unmet needs in the treatment of pain and inflammation. The Company has leveraged its AYX platform of proprietary transcription factor decoys to identify and develop product candidates designed to modify the course of pain. Its product pipeline includes Brivoligide for postoperative pain and AYX2 for chronic pain. Brivoligide is a transcription factor decoy specifically designed to inhibit the function of transcription factor Early Growth Response 1 (EGR1), in the dorsal root ganglia (DRG), and spinal cord when administered at the time of surgery. Its second product candidate, AYX2, is a transcription factor decoy targeting the activity of specific members of the KLF family of transcription factors, including KLF6, KLF9 and KLF15.