Generex to sell up to 49.5m shares to investor
WORCESTER - Generex Biotechnology Corp. said it issued 2 million shares to an investment group that could choose to buy 49.5 million shares over the next year.
Seaside 88 LP will have the option to buy 2 million new shares every two weeks. It can buy up to 24 tranches, and will then have the option to buy a final tranche of about 1.5 million shares. If all of those shares are sold, Seaside 88 will have a 16.3-percent stake in Generex. Seaside 88 is a private investment limited partnership.
The first shares were sold at a price of about 47 cents per share, a discount based on the stock's trading price over the last two weeks. After deducting expenses, Generex said it received about $837,000 from the initial sale. Any future sales will also be made at a discount. Seaside 88 will either pay 89 percent of the volume weighted average closing price of Generex shares over the past 10 trading days, or 95 percent of the volume weighted average closing price of the previous day, whichever is lower. Seaside 88 will not be able to buy the shares if the price drops below 33 cents per share.
The stock finished at just under 51 cents per share Wednesday, and in Thursday trading it declined 2 cents, or 3.9 percent, to 49 cents. Generex had 253.6 million shares on the market as of March 9.