On July 5, 2010, Oragenics, Inc. (the "Company") (OTCBB: ORNI) entered into a Common Stock Purchase Agreement (the "Agreement") with the Koski Family Limited Partnership ("KFLP"), an accredited investor and the Company's largest shareholder. The entering into of the Agreement was approved by the Company's disinterested directors. Pursuant to the terms of the Agreement, at Closing the Company is to issue 5.0 million shares of its Common Stock to the KFLP at a price of $0.40 per share. The $2.0 million aggregate consideration to be paid by the KFLP is to consist of (i) $1,000,000 cash payable at Closing, and (ii) the exchange and cancellation of the outstanding $1.0 million promissory note issued to the KFLP on May 25, 2010. Accrued interest on the note will be waived by the KFLP upon Closing, which is expected to occur on or before July 31, 2010 and is subject to the continued accuracy of representations and warranties of the Company in the Agreement and the other customary conditions set forth herein.
“We are extremely pleased to have entered into this Agreement with the KFLP, which when closed, will provide us with additional working capital for our operations and should enhance our ability to execute our operations more efficiently and effectively.”
Simultaneously with the above securities purchase (including note conversion) and as part thereof, at Closing the Company and the KFLP are also expected to enter into an unsecured revolving credit agreement (the "Credit Agreement"). Pursuant to the Credit Agreement, the Company will be able to borrow up to $2.0 million from the KFLP at LIBOR plus 6.0% after August 1, 2010 for a period of twelve months.
David B. Hirsch, the Company's President and CEO stated, "We are extremely pleased to have entered into this Agreement with the KFLP, which when closed, will provide us with additional working capital for our operations and should enhance our ability to execute our operations more efficiently and effectively."