BSD Medical Corporation (NASDAQ:BSDM) today announced that it entered into a securities purchase agreement with two institutional investors for the sale of 1,644,737 shares of its common stock in a registered direct offering at $1.52 per share. In addition, warrants to purchase 1,233,553 shares of common stock in the aggregate will be issued to the investors. The warrants are exercisable beginning six months and one day after closing, expire 5 years after becoming exercisable and have an exercise price of $1.94 per share. Gross proceeds of the offering, before deducting placement agent fees and other estimated offering expenses payable by BSD Medical Corporation, are expected to be approximately $2.5 million. These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein.
BSD Medical Corporation intends to use the proceeds of the transaction, subject to certain restrictions, for general corporate purposes, including working capital.
The completion of the offering will occur on or before May 6, 2010. Roth Capital Partners served as the placement agent for the offering.