Capstone Therapeutics Corp. announced that it expects to receive $1 million in funding from BVF Partners LP
As part of the transaction, the lenders have the right to acquire convertible preferred stock on the conversion of the notes. The unpaid principal amount of the notes will convert automatically upon the closing of a qualified equity financing. If the qualified equity financing is not consummated by March 31, 2016, the unpaid principal amount of the notes may be converted at the election of the investors into shares of common stock, at a conversion price equal to the trailing 10-day weighted average trading price, but will be not be less than $0.135 or more than $0.18 per share. The agreement also provides the investors an exclusive period, initially ending January 31, 2016, to propose terms of an additional investment of at least $7,500,000, but not to exceed $10,000,000, in the company. The company and each investor will bear their respective expenses as part of the transaction.