PURE Bioscience, Inc. (NASDAQ: PURE ), creator of the patented silver dihydrogen citrate (SDC) antimicrobial and SDC-based products, today announced that it has entered into two purchase agreements with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor, for the sale of up to a total of $10 million of its common stock.
The first purchase agreement commits LPC to purchase up to $7.5 million of PURE common stock, from time to time, over a 36-month period. The securities under this purchase agreement are subject to certain conditions including the effectiveness of a registration statement to be filed with the US Securities and Exchange Commission covering the resale of the shares that may be issued to LPC.
The second purchase agreement commits LPC to purchase up to $2.5 million of PURE common stock, from time to time, over a 36-month period, including an initial investment of $500,000. The securities under this purchase agreement were offered through a prospectus supplement pursuant to PURE’s effective shelf registration statement and base prospectus contained therein.
Under both agreements, there are no upper limits to the price LPC may pay to purchase PURE common stock. LPC has no right to require any sales by PURE, but is obligated to make investments as PURE directs in its sole discretion in accordance with the purchase agreements. The purchase agreements may be terminated by PURE at any time, without cost or penalty. Any time that PURE elects to sell shares to LPC, the pricing of that sale will be fixed pursuant to a formula based upon the market price of PURE common stock immediately preceding the notice to LPC without any fixed discount. Accordingly, PURE will know on the date it elects to sell stock to LPC the price per share that LPC will be required to pay.