CBMC Enters into $8.0 Million Common Stock Purchase Agreement with Fusion Capital
Calypte Biomedical Enters into $8.0 Million Common Stock Purchase Agreement with Fusion Capital Wednesday January 23, 4:15 pm ET
PORTLAND, Ore.--(BUSINESS WIRE)--Calypte Biomedical Corporation (OTCBB:CBMC - News), a developer, manufacturer and marketer of HIV diagnostic tests, today announced it has entered into a $8.0 million common stock purchase agreement with Fusion Capital Fund II, LLC, a Chicago-based institutional investor. The Company may sell up to $8.0 million of its common stock to Fusion Capital from time to time over a 24-month period after the Securities and Exchange Commission (SEC) has declared effective the registration statement related to the transaction. The proceeds will be used to further the commercialization of the Company�s AwareTM HIV-1/2 Rapid diagnostic tests, develop new diagnostic tests and for general corporate purposes.
Under the agreement, the Company has the right to sell shares of common stock to Fusion Capital from time to time in amounts between $100,000 and $1.0 million, depending on certain conditions, for up to $8.0 million of total funds. The purchase price of the shares will be based on the prevailing market prices of the Company's shares at the time of sale without any fixed discount, and the Company will control the timing and amount of any sales of shares to Fusion Capital. There are no negative covenants, restrictions on future financings, penalties or liquidated damages in the agreement. A more detailed description of the transaction, as well as the agreement, is set forth in the Company's Report on Form 8-K filed today with the SEC which should be reviewed carefully in conjunction with this press release.
�We are very pleased to enter into this $8.0 million funding agreement with Fusion Capital, a respected institutional fund that has been investing in technology and health care companies for over eight years,� said Roger I. Gale, CEO of Calypte. �The agreement, as a complement to funding potentially available to us from other sources, provides the Company with the flexibility to help us grow our rapid HIV diagnostic testing business in large developing markets as well as in the U.S."
It makes ya' wonder how they can release a PR one day, a PR that basically says we are broke and need to dilute the shareholders even more, then just a few hours later, out of the blue, they release another PR stating they are almost at the Promise land. Yep, the timing on these PR's is definitely suspect alright. I can just imagine what Roger and company must have been thinking on how to present the bad news of needing more money to the shareholders. One loyal BOD suggested they buoy the bad news with some good news. Roger then asked with what? The loyal chap said we could always pull our ace out of the sleeve PR? Roger commented by saying that was a splendid idea because knowing CBMC shareholders like they do,they will always fall for any China related news. The question now is how long will it take China to get back to CBMC--another two years? Good luck penny!
WOW! Who would give CBMC 8 Mil. unless they are in the know!! USA approval coming down the pipe BwahahahahahaBwahahahahah! All naysayers will still not be convinced until share price hits 1.50-2.00 then they will try to bash th estock as it goes to 2.95-4.00... GET ON THE TRAIN WHILE YOU CAN!! AT A PRICE THAT IS UNBELIEVABLY CHEAP!! GET IN OR SHUT UP AND WATCH MM START TO MOVE THIS PUPPY UP! I AM THE GOV AND THE GOV HAS SPOKEN!